Pine wrote on 05/26/14 at 07:51:16:Well back to the Russia-China gas sale...
Mpescatori, I am curious as to why you think they will make the sale in euros? Doesn't that just put them into a different but equally bad currency with regards to their own currency fate/control? (not saying your wrong.. just curious to why)
The Federal Reserve has been pumping new cash for the last ... 15 years in order to solve the US economic crisis.
The European central bank printed a predetermined amount of cash, distributed it to Nations, and told them "this is your allowance, make it work".
When some EU Nations pointed out "it isn't enough, we need more" the reply was "pay your debts and get opn with life".
So, hard times and grinding of teeth, but the economy is getting better because public spending is being slashed.
Moreover, popular economy is far different in different nations.
In Italy, for example, over 80% families own the home they live in.
And banks only give you a mortgage for max. 80% of the stated value of the house - and ask for your employer's statement, no self-certification you earn amillion/year.
That's why Freddie Mac and others went bankrupt, and ruptured the housing speculation bubble, while in Europe there was no such bubble.
My (admittedly very limited) understanding of the situation ( euros) was that, as with dollars and most every other currency,... inflation (due to increased currency creation) was still an issue. While I have zero evidence to back that up , it would seem counter intuitive that the euro and the US dollar have kept more or less on par and we KNOW that the dollar supply has skyrocketed. If what you say is true... that US dollar is being inflated and euro is not... it would seem that dollar should have dropped in value to the euro much more than is the case.
However... Russia, due to the US banking sanctions brought on by Ukraine, sanctions that the EU agree with, has reasons to move away from dollars and euros other that just simple inflation (which is bad enough).
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