The End of the Euro? – CBS MoneyWatch.com


# It still costs more than $1.30 to buy one Euro. In 2002, it only cost 87 cents. There’s still a huge amount of faith in the economies and currency of Europe, vis à vis the United States. That may be because while the U.S. could unilaterally devalue its currency and pay off its debts with cheap money, Greece, Portugal et al can’t just can’t just print money on their own. Over time, as the U.S. economy strengthens and Europe struggles, the dollar could gain against the Euro. But it’s probably not likely that the Eurozone will implode.# Usually we just muddle through. That’s the long term lesson of economic history. It’s rare for nations to default on their debt, and rarer still for a strong and powerful currency to fall apart altogether. With the IMF, Germany, and the rest of the world willing to keep bolstering Greece, but the Greek economy still a big mess, the vulnerable economies of Europe are likely to struggle (choose your verb: shlep, struggle, limp) along and improve eventually.

The End of the Euro? – CBS MoneyWatch.com

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