I have no idea what’s going to happen to the Euro.
I know that 17 countries have the same currency. A few are Austria, Belgium, Portugal, Spain, Greece, Italy,etc. The reason for the Euro is to make trading between the countries cheaper. Plus it removes cost of exchanging currencies. Using the same currency has reduced the cost of traveling from one country to another. Also goods bought while traveling are cheaper, since there is no exchange rate. It’s almost like traveling from one state to another state in the United States. We use the same currency in every state, and we don’t have to pay an exchange rate every time we travel from state to state. It’s the same money in every state. That’s the way it works with the countries that use the Euro.
But the Euro has recently run into problems. Some countries have problems because of huge debt deficits. It began with Greece. Greece could not pay on its debt, and had to borrow. It borrowed from the central bank and wasn’t able to pay back its debt. Then Spain and Italy had the same problem. Too much debt and can’t pay back the money. Too much debt because they spent more money than they had. A lot of debt accumulated because high unemployment, therefore, no taxes coming into their treasury. Being in debt caused problems world-wide, even in the United states. The stock market here went up and down every day, causing people to lose their hard-earned money.
No one knows what will happen with the Euro. I sure as hell don’t. Will it survive? Or will all the countries that are part of the Euro go back to their original currencies? No one knows. Not even the countries involved. Only time will let us know the future of the Euro.
But I’ll venture a guess and say that the future of the Euro is a short one. I wish I had money to put into the stock market. I’d make money by betting against the Euro, ala George Soros. He always makes money by betting against what’s going to happen to currencies all over the world. That’s how he became a billionaire.
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