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Euro to hit dollar parity in 2011 - if it survives

cpwill

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frankly, i think fears of the Euro's imminent collapse are calling the situation too soon. the US will back the EU financially via the IMF and the World Bank, and buy them a couple of more years despite the cost to American taxpayers. I also think that the notion of 'robust growth' in 2011 completely ignores the scheduled tax increases over here; to hit on Jan 1, 2011. Arthur Laffer makes a fairly compelling case that we will see production and income front-loaded into 2010 to avoid these higher rates; resulting in an American contraction in 2011.

Euro to hit dollar parity in 2011, if still exists: analyst

The euro is set to sink to parity with the dollar in 2011 because of the slow pace of economic recovery in Europe, if it has not broken up by then, a consultancy predicted Friday.

In a quarterly report on global economic prospects the London-based Centre for Economics and Business Research (CEBR) forecast that the European single currency would fall to parity against the US greenback next year.

The CEBR predicts that the Federal Reserve Bank will start to raise US interest rates in late 2010 in response to strengthening growth.

In contrast, it says, the European Central Bank "will remain hamstrung by the weakness of the European economy and will be forced to hold rates down."...

"It is almost inevitable that the euro will break up at some point," McWilliams said. "It could be soon, it might be in five to 10 years time."

"In the meantime, the one certainty is that the euro will be weak," McWilliams said.

"It has already fallen by 30 cents against the dollar this year and will probably fall the final 20 cents to break parity when it becomes clear that US rates are about to rise while euro rates will be held down because of the weakness of the economy." ...
 

Kushinator

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Do you know how to use the quotes? If so, please make an attempt to do so as it is troublesome to differentiate between your commentary and that of the articles.
 

cpwill

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:) sorry, i assumed that putting a link in the title that matched that of the thread made it obvious.
 
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