Wednesday, June 29, 2011

The Euro - a Tobin tax is needed

China's deep pockets are momentarily keeping the euro supported. For months, whispers of "Asian official buying" have permeated markets when the euro fell below certain levels. That talk has kept euro/dollar hemmed into a tight seven-cent range since late May, even as fears of a Greek default make traders disinclined to hold the single currency. The market is inclined to sell the euro on rallies whereas China wants to buy it on dips.

Market Watch, like many others, believes the euro will break up and suggests 6 likely triggers.

IMO: A Tobin tax is needed throughout, and measures can be taken to make it stick - if the politicians want to do so. Other stricter measures, like a stronger act than Glass-Steagall, will help matters.

IMO: The Greek economy does not meet the ideals of the European fat cats. Not enough money can be filched from the poorer of the Greeks to put matters straight. So trying to take even more money to further line the pockets of the bankers is not the answer. The present austerity measures accepted by the Greek politicians are only window dressing. Creative accounting seems to be the only easy temporary answer for the EU.  But NONE of these people are living in the real world - none of them, including the Greeks, are poor at all. I'm speaking from India and I know that much of the world faces real poverty every day.

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