It fascinates me that our world today is filled with an ever changing cast of 'Buzz Words or Events' that the lawmakers and media (sometimes create and then) tend to groom to create varying levels of panic (to those who are bought into believing what the media says) or excitement depending on the nature of the 'Buzz'.
The latest is 'EURO CRISIS'.
As far as my memory serves (and that is questionable) ever since the events of the first gulf war courtesy former Prez Bush; to 9/11 to the continuation of the now newly defined 'War on Terror' to the golfing scandal to a serious oil spill to a potential '2012 Mayan Apocalypse' we have witnessed what could be described as a systematic degradation of the 'Human Possibilty'.
The Apple and Google inventions (for which I have tremendous respect) not withstanding our society has got adept at finger pointing (perhaps we as a species always did it but somehow have developed extra digits or more acuity in pointing said digits) and consumed by the hunger for the next big Scam or Scandal or Story that could be titled as Breaking News.
Which brings me to my thesis for this blog - What's up with the Euro?
Technically speaking the EURO is DOWN baby - way DOWN. As in its comparison to other major currencies of the world. Now how or what you may ask is the thesis here?
For starters when I got to thinking the current situation of the Euro Zone having been caused by greedy speculators from all walks and continents buying property in Stockton CA or Henderson NV or Miami Fl is itself noteworthy.
Stockton what?
That's right - for most farmers or cattle hands or teachers in Iceland or Norway or Greece that is a fair question. To consider the oil slick from the financial rupturing of the CDO market having caused this serious upside down economic turmoil is fascinating.
I am no Samuelson but now all of a sudden the world is mesmerized by the possibility of what the implosion of the EU and its EURO could mean to their already frazzled financial and therefore mental state.
Equity markets worldwide are in a state of high anxiety as defined by financial experts in terms of the VIX (sort of like a decongestant for the choked emotions of all traders) spiking to record levels. All manners of equilibrium is distorted as the world leaders and economists ponder the next step to fix and stabilize the calculation of their individual net worth(s). That is what is beign attempted since a constant fluctuation of all asset prices leaves everyone in a tizzy.
I believe that the idea of 'economy of scale' is hard to pin point and the whole Euro Zone concept is breaking at the seams since the current over leveraging has resulted in the 'economy' portion of the equation going outside the scale.
There were supposed synergies to be derived just like a large M&A deal provides but at some point beyond the critical mass the equilibrium is lost and natural entropic laws take over.
Goliath corporations also have to breakdown after their pinnacle is reached (General Motors or Ford are examples that only survived after cutting out pieces that they could not focus their energy on and were mere distractions) and reorganize with laser focus on what they can do best.
The EU as a concept also may have reached that inflection point where individual countries think its best to retain their individuality and let the struggling entities fight their own fight.
Why the dollar is gaining is a mystery though that I have yet not pondered much on. Pundits call it the 'flight to safety'. Another distracting terminology used by people who want to sell ad space on their media outlets.
At this point everyone in the western world is OVER LEVERAGED (i.e. has bought into the notion of 2+2 = 22) and there is no SAFETY. Individuals and corporations and countries alike need to WAKE UP and SMELL the STINK and call it a STINK and then only can they fix their situations.
On that bright note I will go seek some Safety in buying next week's groceries for the family.
Cheers,
The latest is 'EURO CRISIS'.
As far as my memory serves (and that is questionable) ever since the events of the first gulf war courtesy former Prez Bush; to 9/11 to the continuation of the now newly defined 'War on Terror' to the golfing scandal to a serious oil spill to a potential '2012 Mayan Apocalypse' we have witnessed what could be described as a systematic degradation of the 'Human Possibilty'.
The Apple and Google inventions (for which I have tremendous respect) not withstanding our society has got adept at finger pointing (perhaps we as a species always did it but somehow have developed extra digits or more acuity in pointing said digits) and consumed by the hunger for the next big Scam or Scandal or Story that could be titled as Breaking News.
Which brings me to my thesis for this blog - What's up with the Euro?
Technically speaking the EURO is DOWN baby - way DOWN. As in its comparison to other major currencies of the world. Now how or what you may ask is the thesis here?
For starters when I got to thinking the current situation of the Euro Zone having been caused by greedy speculators from all walks and continents buying property in Stockton CA or Henderson NV or Miami Fl is itself noteworthy.
Stockton what?
That's right - for most farmers or cattle hands or teachers in Iceland or Norway or Greece that is a fair question. To consider the oil slick from the financial rupturing of the CDO market having caused this serious upside down economic turmoil is fascinating.
I am no Samuelson but now all of a sudden the world is mesmerized by the possibility of what the implosion of the EU and its EURO could mean to their already frazzled financial and therefore mental state.
Equity markets worldwide are in a state of high anxiety as defined by financial experts in terms of the VIX (sort of like a decongestant for the choked emotions of all traders) spiking to record levels. All manners of equilibrium is distorted as the world leaders and economists ponder the next step to fix and stabilize the calculation of their individual net worth(s). That is what is beign attempted since a constant fluctuation of all asset prices leaves everyone in a tizzy.
I believe that the idea of 'economy of scale' is hard to pin point and the whole Euro Zone concept is breaking at the seams since the current over leveraging has resulted in the 'economy' portion of the equation going outside the scale.
There were supposed synergies to be derived just like a large M&A deal provides but at some point beyond the critical mass the equilibrium is lost and natural entropic laws take over.
Goliath corporations also have to breakdown after their pinnacle is reached (General Motors or Ford are examples that only survived after cutting out pieces that they could not focus their energy on and were mere distractions) and reorganize with laser focus on what they can do best.
The EU as a concept also may have reached that inflection point where individual countries think its best to retain their individuality and let the struggling entities fight their own fight.
Why the dollar is gaining is a mystery though that I have yet not pondered much on. Pundits call it the 'flight to safety'. Another distracting terminology used by people who want to sell ad space on their media outlets.
At this point everyone in the western world is OVER LEVERAGED (i.e. has bought into the notion of 2+2 = 22) and there is no SAFETY. Individuals and corporations and countries alike need to WAKE UP and SMELL the STINK and call it a STINK and then only can they fix their situations.
On that bright note I will go seek some Safety in buying next week's groceries for the family.
Cheers,
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