Markets in turmoil as euro fears spiral
By Chief Pistol Packin' Mama on February 9, 2010 in Indicators of need for prepsThe health of the global economy lurched from “bad to worse” yesterday, battering stock markets and forcing investors into safe haven stocks and currencies.
The pound fell to its lowest level against the dollar since mid-October, the euro hit an eight month low against the greenback and the FTSE closed down 2.2pc at 5138.31.
Fears of a sovereign debt crisis among Europe’s economically weaker nations and disappointing jobless and service sector data in the US hit stock markets on both sides of the Atlantic. The Dow Jones index fell 207 to 10063.55 as investors all but ignored the release of positive retail sales data in the US.
Again, the whole idea that the USD is a “safer” currency than the Euro can only hold because for contingent reasons the USD became the unofficial world reserve currency. That’s why it’s a big problem if oil is ever priced in Euros or anything else. The U.S. is seriously bankrupt and needs to maintain world reserve currency status in order to stay afloat.