Archive for May 2010

Borrow – Lend – Spend

May 10, 2010

The financial distress in Greece has forced EU-countries to a closer co-operation in financial matters. The stability fond will be getting new funds to reach total of 110 billion Euro. Some specialists foresee already also a tighter co-operation towards a more common taxation system in the EU. Euro-countries have sofar benefitted from the Euro and will fight for it. The question is how non-euro EU-countries will participate. Anyhow measures will be taken to prepare for issues coming upin tje future – expected from Spain, Portugal and even Italy. A weaker Euro gives at least at the moment a relief for locally operaring companies against US competitors and helps exporting companies in tough world market. How Chinese Yuan and US dollar will behave in the near term will be very interesting. I will follow the development, and keep on hammering: US companies can produce at home for the same total cost as in China when utilizing minimum wages in Southern states of the US and lesser transport and freight costs due their existence at the market area.