What Euro Crisis Proves
Though the Japanese yen gets so stronger against the US dollar, the dollar is strengthening its value against currencies of South Korea, India, Brazil, and South Africa as well as against euro.
It is said that FRB provided dollar bills worth $100 billion in 2008. The monetary base of the US dollars has been increasing ever since. There are now so many US dollars in the money market not only within the U.S. but also in the wider world. But the US dollar gets stronger than other currencies, including euro, except a few such as the Japanese yen.
It proves how bad the economic state of EU is. It also indicates how much the emerging countries, such as South Korea, India, and Brazil, depend on Europe.
In other aspect, the U.S. and the E.U. might be competing for future initiatives. And, the prospect of Europe is not so good as America's is. This is what the recent trend of the foreign exchange market implies. It also tells the future of the U.S. still looks more promising than that of those emerging countries, such as BRICs, though the unemployment in the U.S. is more than 9%.
Hidden factors are of course Japan and China. So far, it looks like that Japan and China are supporting the U.S. No matter how the American elites regard Japan and China, both the global No.2 economies are on the American side in terms of the financial issue. But, the E.U. is far from Japan. More specifically, G2 of America and Japan are now withstanding the euro crisis. This combination is highly appraised. So, the US dollar gets strong than euro and BRIC currencies; the Japanese yen gets stronger than the US dollar. And, in terms of industry and trade, Japan and the U.S. are behind China, though China exports more to Europe than to America.
So, the Greek crisis tells that the future is still in the hand of G2 of Japan and the U.S. rather than other G20 countries.
(to be continued...)
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Mar 10:13 And they brought young children to him, that he should touch them: and his disciples rebuked those that brought them.
Mar 10:14 But when Jesus saw it, he was much displeased, and said unto them, Suffer the little children to come unto me, and forbid them not: for of such is the kingdom of God.