Pay close attention to Greece now.
- No austerity for posterity as the anti-bailout Syriza party extends its lead in the polls just before elections in Greece on Sunday.
- Whilst the Greek people are warned that a Syriza win may risk Greece leaving the euro, that's the only hope for the average Greeks feeling disenfranchised by the Greek economy.
- Syriza’s rise is fuelled by professors-turned-politicians who are in no mood to appease the large debt and austerity enforcers: the IMF, the ECB and the EU.
- Syriza victory in Greece could lead to 'economic chaos' within Greece as promises to reduce the debt burden by 50% cause a rapid Grexit from the eurozone.
- The cascading ripples across the euro zone are likely to cause the single currency to collapse further in value against the dollar and other hard currencies just as it is already in free fall because of the 1.2 trillion euro money printing -- quantitative easing -- announcement by the ECB this week.
- Step by step a number of central banks and multi nationals may reduce their euro holdings as the purchasing power of the euro declines rapidly in the aftermath of the adverse Greek elections result.
- Large scale global selling of the euro could yet precipitate a run on the euro which may then fall well below parity with the dollar.
- There comes a point in any currency's price cycle where its value falls to a point from where it becomes difficult to recover. This is even more important in the case of a global reserve currency such as the euro.
- In the coming days, possibly weeks, the euro may fall in value to a point of no return.
- At such a point, the euro currency could simply implode in terms of lost global confidence unless the ECB swiftly begins to tighten monetary policy?
What are your thoughts, observations and views? We are keen to listen and to learn. Please add your comments below.
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