Greek Debt Crisis Increased, Euro Falls

To stabilize Euro, European Commission and IMF joint issued subsidiary mechanism

with 750 billion Euros last week, however this huge empty promise can only solve worry of investors temroraily, which could not appease serious wounds of global economy by debt crisis. In addition, recently euro zone members successively issued tight fiscal policies, prompting the continued depreciation of euro. There are rumors, recently, that France once threatened to withdraw from the euro system and Germany once considered resuming Mark as its official currency so as to prevent the euro zone from collapse. Hit by news above, rate of Euro to dollar decline under 1.2234 on 17, which is the lowest point in 4 years. Jean-Claude Trichet, the chief of European Central Bank made a response for it that situation that underselling Euro after European debt crisis is similar to that of bankrupt of LEH.N. He warned that:" The economy of the European countries in stepping in to the most difficult situation ever since the Second World War, even the worst since the First World War. The reaction of market towards crisis is even worse than the galobal financial turmoil in 2008."4 Things You Must Aware About thomas sabo

Investors undersell euro widely: Investors undersell euro widely in 17th. The exchange rate of USD-EUR drops below 1.2330 USD, 1.2250 USD key supporting level, create the new low record since April, 2006. Last week, Euro is the largest devalued currency for dollars, declined over 3%. There is a common perspective among investors that Euro will decline further and its rate is not optimistic. UBS expected that the exchange rate of euros convert dollars will fall to the level of 1.15 dollars before the end of this year and it may fall to the level of 1.10 dollars level before the end of next year. The foreign currency analyst of New York Mellon bank expected that the exchange rate of the euros convert dollars even may fall to the level of fair price in the end of this year. Japan Shinkin Asset Management Company predicted that euro`s exchange rate would continue to decline for a long time, the next support level of euro`s exchange rate against dollar would be 1.2000 dollars, and euro`s exchange rate against yen would drop to 112.00 yen.What Mary-Kate Olsen Wearing? !

For investors invest gold to hedge in turn. The international gold price with euro and pond as the valuation created a new record in 17th. It's estimated by Swiss MKS company that the gold is to take the place of euro reserve, and the gold price will rise further. At present, European debt crisis is likely to expand to the entire world, leading the drastic violation of global stock market, which made some large-scale hedge fund suffer a great loss; investment portfolio shrank several billion dollars. Data shows, only in the first week of May, some hedge funds suffered loss which can erase all profits in this year, whitin which, London BlueTrend Fund (10 billion dollars) has shrankage of 7.57% in net value, Man Group RivalAHL Fund (20 billion dollars) has shrankage of 3.3% in net value, and America Renaissance Institutional has shrankage of 3.6% in net value. Euro area urgently need the fiscal revolution: Trichet expressed that the ECB and European Union members government must adopts decisive action to stop the spread of crisis. Ryan, the specialist of European economy and currency affairs showed in 15th:Things you Should Know the Brand Which are the First : tiffany&co

European Commission would take all necessary measures to support euro. And the market predicts that, European Central Bank would possibly to delay rate hike time to the fourth quarter of 2011, however, serious problems of Eurozone economy could not resovled by showing attitude on stage of senior officials one by one. Germany Premier Mekerl on 16 pointed out that, it is the great difference between economic power and debt level made the speculation for Euro possible. Starker, Chief economist of European Central Bank, think that rescue plan is a temporary solution. [what we struggle is nothing beside time". He point out that only when member countries of Euro are conduct financial reform and reduce deficit, this disaster can be over.

Germany government expresses that they will remand the Euro area members to unveil the fiscal proposal similar to the Germany full budget method, which will be stricter than the active rule in Euro area that the deficit should not be over 3% of GDP. The law forbid German federal government` deficit to exceed GDP by 0.35% until 2016; after 2020, there would be no deficit in German. At present, German financial minister Wolfgang Schuble is drawing up a set of complete reform plan for euro zone. The financial monitoring report of IMF review the global deficit affairs expected that the average share of the proportion of government debt in GDP including America and Western Europe and Japan these developed economies may rise from 73% in 2006 to 110 % by 2015. IMF had urged the developed economies to sharply cut expenditure and raise tax in order to make the debt take up the proportion of GDP fall to 60% by 2030.

Greek Debt Crisis Increased, Euro Falls

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