The euro has sunk

The euro has sunk again to a four-year-low against the American dollar, threatening economic recovery.

If this trend continues small countries like Bulgaria are facing rising inflation and more unemployment.

Inflation in the uk has hit a 17-month high. This is the worst inflation for 20 years.

http://news.bbc.co.uk/2/hi/business/10121176.stm

:sm (41):

CDG's paypal savings are in euros so even our small forum is affected.

How can this be? The euro seems to translate to more than a US dollar......? :lokum (6):

Today one euro is $1.24

Whole countries in Europe may go bankrupt, all European countries have monster budget deficits.

By 2015 the United States budget deficit is projected to reach 120% of its GDP, this means complete breakdown of economy and the world will fail before our very eyes.

I see it already how my sister's boyfriend got his salary cut last month.

We are facing prolonged unemployment and inflation if the euro sinks further.

Look at this chart for the US:

It was bound to happen; the laws of economics are immutable. If we don't have a major change in direction after November, this will happen in US too and possibly be worse.

Germany, France and the UK have better make a deal to rein in the creation of phony money. It will be hard for a few years but will set the stage for a strong recovery. Delay makes the inflation worse and the recovery take longer.

Don't worry so much about this. The world always seems to be on the edge of disaster. The Euro declines, but then they will export more stuff , it takes awhile but it will work itself out.
Think about the problems faced by Europe in the past, ie, WW2. Compared to that this is a walk in the park!
And anyway, if the shit does hit the fan, there will just be more CDGs all over the place!

I am hopeful that with the new US administration things won't get as bad as the above chart predicts.

Still the US needs a lot of reforms to curb its budget deficit.