With that out of the way, let's move onto the idle thought for the day.
The Greek drama is being played in all its reverberating cacophony over the concerned media. "Merkel wants the IMF in" shouts one, "Sarkozy: over my dead body!" bellows another, "Don't mention the war!" urges others, as some vice-mister from Athens reclaims the gold allegedly plundered by the retreating Wehrmacht. The ECB wades in waving its collateral rules, the EC tuts-tuts, the UK keeps a low profile (better not draw too much attentions to fiscal deficits), the Greeks one day want support as they can't possibly afford paying 6% long term on their bonds, next day "we're all fine thank you very much, no help needed". Et-boring-cetera.
Still, at every twist and turns of this comedy of sorts, the markets take note, and react. Especially so the forex market, most egregiously the EUR/USD. Down, up, down, mostly down indeed.
And when it goes down, the chorus joins in, intoning their dirges about the demise of the proud currency... look what you've done now! stop please! help the Greeks! or the EUR will go down... and we can't possibly have that can we?
Well... actually we can. Certainly we can. Maybe maybe we really want it?
I would venture that a weaker EUR is very much welcomed in Germany, though of course you won't get a single politician admitting it. Germany is, as of recently, the second biggest exporter in the world. A weak euro might help to go back to "numero 1" maybe? It will push up its competitiveness in global markets (ditto for the overall eurozone).
Just another round in the undercover war of devaluation and seeping beggar-thy-neighbour policies that are creeping in.
And, dare I say, there might be a sight of relief within the walls of the ECB. A weak euro will do some of the work for them. The eurozone is still mired in devaluation, and the recovery is limited to a weak pickup in germany and france... so every little help.
This might sound heretic. But by following the good old principle of "cui prodest" one seldom gets it wildly wrong.
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