The Euro Crisis


http://www.economist.com/news/leaders/21614137-if-germany-france-and-italy-cannot-find-way-refloat-europes-economy-euro-may-yet-be

The Euro is a currency that Americans know as much stronger than the dollar. When Americans hear Euro they picture the 1 Euro = roughly 1.3 American dollars currency rate. The question Americans are asking now is, "has the Euro hit its peek?"

With their youth unemployment rising, and the weak economic countries of Italy, which is in a recession, France, which had a flat GDP, and Germany which although is usually economically strong, also saw an economic stall in the 2nd quarter, could see there euro slowly fall in the coming years. Why? Because inflation is has fallen to .4% which is not were the European Central Bank wants it. They aim for -.2% inflation rate and since it is so off its mark, the worry of Euro deflation has begun to set in.

This can be blamed on a few countries of the EU, but  France seems to be a major economic let down. Their President has called for a release of the tight economic policies in order to increase the budget deficit, lower taxes, and cut spending.

I think that while the Euro is strong, the growing American economy could cover some lost ground in the currency rate. As the article says, "The Euro crisis has not gone away, it is just waiting over the horizon."