The Euro On One Leg And Losing Its Balance

Germans Reconsider Ties to Europe

http://online.wsj.com/article/SB10001424052970204138204576598643746175236.html?mod=WSJ_hp_us_mostpop_read

The article has chilling implications.

How long till the return of the Mark, the Franc, Lira, Peso, Guilder (Netherlands), Markka (Finland), Krone (Denmark), Drachma etc...?

And just how will the exit take place?


Because the writing is definitely on the proverbial wall: The Germans  -- the bulwarks and principal backers (read financiers) of the Euro -- are wavering in their resolve.


Sentiment, or the mood of the markets, is something wise investors watch. Now - it may be time to watch the mood of Germany toward the Euro because when pessimism about the Euro becomes widespread - the end of the Euro is insight.

And when the leaders of Europe begin vehemently denying a return to national currencies - it is imminent. DUCK. Run for cover. Cut any exposure to Europe and prepare for the real Financial Tsunami to hit.

EUROPE --- Repeating History: More World Wars?

Criticism of America is popular, ubiquitous and most-often well-deserved. And because it is the central actor on the world stage, it is also the easiest target.

But what of Europe? Remember - those people who consider themselves the paragons of a higher humanity, greater sense of justice and who seem to make the world's luxury goods eat equally well....

Are also the Idiots who've plunged the world into - not one - but TWO world wars. And as the threat of a disorderly breakup of the Euro (which is a question of When - not If) grows greater by the day ---- it may well be Full-Of-Itself Europe that AGAIN plunges the world into chaos.

Below is a quote from an article in the WSJ that accurately illustrates the risks to Europe --- A sort of Damned if it does and damned if it doesn't scenario in regard to Greece's bankruptcy:

http://online.wsj.com/article/SB10001424052970204422404576593122004251398.html


"The cost to Greece of exiting the euro could be up to 20% of GDP, according to Credit Suisse estimates. But once the taboo of euro exit is broken, other fiscally troubled countries will be at risk of similarly catastrophic bank runs, raising the specter of a disorderly euro break-up. That could trigger losses of up to €300 billion in core euro-zone banks and €630 billion among peripheral countries' banks, Credit Suisse estimates."

And if that happens, the vaunted Europe will likely sink back into a second Dark Age. At least in such a state of barbarity, they are less likely to be a menace to the world again anytime soon.

Twilight of America: Waiting in a vacuum...

Most people would consider this fantasy, but America is already no longer the great superpower. The signs are everywhere. Daily. Problem is, because most people cannot conceive of such a world, it is not even within the realm of possibility in most minds.

Like an "OFF LIMITS" sign hangs inside the brain.

But, push the sign aside, embrace the possibility and the signs are EVERYwhere.

Just today, there are two articles in WSJ. Most people probably read and pass on thinking "Oh, that was interesting/sad/great...." Whatever the individual sentiment. But failing to see the connection.

Hong Kong is planning for the DEpegging of its dollar to the US.
http://online.wsj.com/article/SB10001424053111904060604576574640464933236.html?mod=WSJAsia_hpp_LEFTTopStories

Then there is an article about America's aging military hardware.
http://online.wsj.com/article/SB10001424053111904103404576561053811426640.html

Two paragraphs really tell the story in a nutshell:

"The Aegis guided-missile cruiser, a warship designed to counter the threat of Soviet warplanes armed with antiship missiles, entered service in 1983. Today, the bridges of older Aegis ships are reminiscent of the video arcades of the 1980s: monochromatic consoles with push-button controls. "The systems that we are replacing are Commodore 64 technology," says Navy Capt. Brian Eckerle, invoking the primitive home computer to describe ongoing efforts to modernize Cold War-era ships.

One Air Force pilot describes the navigation systems in his unit's C-130 cargo planes, which entered service nearly three decades ago, as "antiquated." A navigator in his unit, he says, bought an off-the-shelf Global Positioning System device that can better provide weather information and the latest civil aviation notices, and even check the accuracy of the government-issued navigation system."

When commercicaly available technology is superior to the elite military goods  - you know the powers that be are asleep. The important takeaway is to note the inflection point has probably already passed. America is probably already no longer in control of the seas in Asia.

And...

The US dollar is already no longer the world reserve currency. IN FACT. Yet, the world continues in its fantasy that it is. Why? - because most of us have never known a world any different. We simply have trouble imagining it is even possible or fear what it might mean.

Even those who hate America - like an opposition party in parliament - are often at a loss when faced with the possibility of ruling.

So the world sits and waits for a new world leader or leaders, or whatever system will emerge. Meanwhile - it is just easier to pretend nothing has changed.

Business-Enviro Trend To Watch

The Wall Street Journal has what seems to be just another article about Foreign Direct Investment by an internet company - Google. But it is much more profound than that. Welcome to the Enviro-Business Model.
http://online.wsj.com/article/SB10001424053111904836104576560551005570810.html

Companies all over the world have been shaving and sawing off costs everywhere they can for a long time.
Old News. People call these frictions. Or basically anything that inhibits or slows down, any barrier to business.

Whether that means more time, more money, more materials, more info processing, higher labor costs, operational costs.... Everything is on the chopping block.

And this article points to the next trend: Enviro-Restructuring. That is, businesses looking for ways to make their business more harmonious with nature so as to save money with the ultimate aim of becoming more competitive.

In Google's case, they've come to the not-hard-to-understand conclusion that their data centers eat up an enormous amounts of energy. Energy that impacts their expenses and competitive position vis-a-vis rivals.

Solution? Locate the data centers somewhere cold. Where the ambient temperature helps cool the servers.

When you think about it, it's so perfectly logical one almost wonders why it hasn't been done already. Why? Because in the West, since the Industrial Revolution and the advent of Germ Theory and vaccines, we have tended to ignore nature.

There has been a lot of arrogance. A real attempt to defy and live beyond the laws of nature. What has followed in its path is a destruction and degradation of the planet. And of course, the reaction to that - Environmental Extremism.  

But I see a reversal. A tacit, quiet admission. Tentative. But unmistakable. Business is realising that while it has never been cost effective - now the competitive pressures are laying bare costs that were formerly hidden or ignored.

Internet companies are truly on the leading edge of so MANY trends that are reshaping our world, but look to see more and more companies around the world following Google's lead.

First it will be internet and other technology companies. But within a year or two it should start to broaden to other industries.

Here's the takeaway: Is your company ready when this wave hits? Or will you be left behind?
Watch the wave...