While discussing the IMF's global GDP outlook cut, chief economist Olivier Blanchard predicts a...

While discussing the IMF's global GDP outlook cut, chief economist Olivier Blanchard predicts a recession could hit the U.S. next year if the country goes off a "fiscal cliff" of tax cut expirations and automatic spending cuts. He also suggests a further 10% depreciation of the euro could boost the eurozone's growth by 1.4%, and benefit export-dependent Germany and Holland the most.

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  • Brian Bobbitt
    , contributor
    Comments (2087) | Send Message
    First of all, I will not use the words, "may, could, should, or would", and I will make a statement: "The Euro-dollar will go down more than 10%".
    Okay, now compared to what? The US$ and perhaps a few other majors like the CHF or even the YEN and AUD. (Probably a few more too)


    So, what.


    So, it will simply make their goods a little cheaper, and perhaps help stave off more recessionary economic tendencies as exports increase[probably damned little but increase]. [probably helping Germany the most]...


    After a little aid to the ezone economy, their bigger shoes will fall, and this ain't no biped. This is a thousand legger, and each shoe is falling in its own time. Each shoe that drops, the E-zone gets weaker and weaker. What are these shoes made of? DEBT, and it ain't goin' away anytime soon. BUT, the E-zone is still a big outfit, and demand from their people [and other countries] is dramatic. So,,, [another so] demand is the elixir of economies, [the lack of it, is the poison].
    Demand for necessities will continue unabated, as it does in the third world, and items not needed, will suffer hard times. So, that is probably a great direction to look to stocks. Which will have the focus of the needs of the people.


    I for one, say, we have a mirror of their problems right here at home, and so far, I see no one working on it.


    Better pay attention to defensive investing, and I don't mean guns and ammo. I mean stocks that have products that are needed by the population.


    Buy PM's soon.


    Capt. Brian
    The Lost Navigator
    16 Jul 2012, 01:43 PM Reply Like
    , contributor
    Comments (10814) | Send Message
    Amazingly everyone wants to have a "weak" currency advantage when it comes to exports. But guess what? EVERYONE can't have a currency advantage (unless of course you employ stealthy tricks like a couple hundred trillion in interest rate swaps designed to keep your interest rates down and gold price suppression).
    16 Jul 2012, 07:05 PM Reply Like
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