Posted on 06/29/2015 9:54:41 AM PDT by bananaman22
The Greek tragedy is reaching its climax.
The discussions between Greece and its European creditors broke down over the weekend, with the two sides still at an impasse. Greek Prime Minister Alexis Tsipras balked at deeper austerity cuts to the Greek economy, cuts that are a prerequisite for further help from Berlin and Brussels.
As a result, Greece is approaching the precipice. With a massive debt payment due on June 30 to the IMF, Greece could default. The extent of the fallout is anybody’s guess, but Greece could see the value of its bonds plummet, putting its banks in crisis, and ultimately the country could be ejected from the Eurozone. The Greek government declared a bank holiday for six days in order to stop the cash exodus from the Greek financial system.
(Excerpt) Read more at oilprice.com ...
Then, I’m for it!
Calling Portugal, Italy, Ireland and Spain, please pick up the white courtesy telephone, your masters are on the line...
Oil prices going down. Why is cheaper energy a problem?
And so it goes....probably the best that can happen is Greece leave the Ero IMO. Sink or swim thereafter. The Eu is “afraid” of letting this happen as it might take hold in other nations as well.
If ever there is a man-made disaster, this should qualify as one. And you can’t argue Greeks weren’t aware of the consequences of their past behavior.
And we in the US can look forward to our own ‘tragedy’.
OPEC Has Already Turned to the Euro
GoldMoney Alert
February 18, 2004
...The source for the euro exchange rate is the Federal Reserve, and I have calculated the euro's average exchange rate to the dollar for each year based on daily data.We can see from column (4) in the above table that in 2001, each barrel of imported crude oil cost $21.40 on average for that year. But by 2003 the average price of a barrel of crude oil had risen 26.0% to $26.97 per barrel. However, the important point is shown in column (6). Note that the price of crude oil in terms of euros is essentially unchanged throughout this 3-year period.
2001
As the dollar has fallen, the dollar price of crude oil has risen. But the euro price of crude oil remains essentially unchanged throughout this 3-year period. It does not seem logical that this result is pure coincidence. It is more likely the result of purposeful design, namely, that OPEC is mindful of the dollar's decline and increases the dollar price of its crude oil by an amount that offsets the loss in purchasing power OPEC's members would otherwise incur. In short, OPEC is protecting its purchasing power as the dollar declines.
If it bring oil down it does it on the premise that the entire world economy is about to go tits up.
Interesting data. How about updating it about a dozen years?
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