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Euro Zone Fiscal Austerity

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http://www.ForexConspiracyReport.com Euro Zone Fiscal Austerity - nWill recent agreements regarding Euro Zone fiscal austerity lead to a Euro Zone recovery and a stronger Euro? …

http://www.ForexConspiracyReport.com Euro Zone Fiscal Austerity - nWill recent agreements regarding Euro Zone fiscal austerity lead to a Euro Zone recovery and a stronger Euro?
Can Forex traders profit from the response of the Euro and other currencies to a coming solution to the debt crisis that has plagued the continent for more than two years?
As good news emerged from Europe, US stocks rallied across the board as did markets throughout the world.
Many believe that a more stable European economy will remove the last impediment to a global economic recovery.
Thus the agreements on Euro Zone fiscal austerity have a much broader impact than just in the Euro Zone.
This reaction to events in Europe is testimony to the interconnectedness of the world economy.
The wide range of US, European, and other stocks that advanced implies that first of all business is already getting better for some companies.
Second, it implies that a resolution of the European debt crisis will help business throughout the world and across the board.
Europe is, after all, the world’s first or second largest economy, depending on whether the USA or EU is in first place.

Asian exporters, especially, are concerned about a recession in Europe and decreased sales.
On the other hand when Euro Zone fiscal austerity measures help in rectifying the debt dilemma in Europe companies in Europe will benefit but so will exporters from Asia and around the world.

The point of the Euro Zone fiscal austerity agreement is to prevent national governments from running up huge debts in their attempt to please voters.
The massive debts incurred in the southern tier of nations have threatened to break up the EU.
The so called PIIGS group (Portugal, Ireland, Italy, Greece, and Spain) have required financial support in paying off and issuing new government bonds.
The situation has been so bad in Greece that there have been riots in response to suggested austerity measures.
The issue for local politicians is that they must satisfy their constituents at home in order to stay in office.
With the new Euro Zone fiscal austerity measures in force these same politicians will have a second constituency, the rest of the EU and the European Central Bank.
If a country does not exercise fiscal discipline it will probably not be able to expect a bailout if times get tough again.

Forex traders can profit from Euro Zone fiscal austerity but will need to understand how measures to fix the debt problem will affect the EU economy and how the EURO trades against other currencies.
First of all heightened fiscal austerity is expected to result in a mild recession in Europe this year and maybe next.
Second, persistent fiscal austerity will likely lead to a stronger European economy and contribute to a stronger Euro.
Third, to the degree that the European Central Bank follows the Bernanke Doctrine and prints money in order to pay off EU debts it will tend to devalue the EURO.
Forth, a devalued EURO ..

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  • 1. WILL RECENT AGREEMENTS REGARDINGEURO ZONE FISCAL AUSTERITY LEAD TO AEURO ZONE RECOVERY AND A STRONGEREURO? W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 2. CAN FOREX TRADERS PROFIT FROM THERESPONSE OF THE EURO AND OTHERCURRENCIES TO A COMING SOLUTION TOTHE DEBT CRISIS THAT HAS PLAGUED THECONTINENT FOR MORE THAN TWO YEARS? W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 3. AS GOOD NEWS EMERGED FROM EUROPE,US STOCKS RALLIED ACROSS THE BOARDAS DID MARKETS THROUGHOUT THEWORLD. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 4. MANY BELIEVE THAT A MORE STABLEEUROPEAN ECONOMY WILL REMOVE THELAST IMPEDIMENT TO A GLOBALECONOMIC RECOVERY. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 5. THUS THE AGREEMENTS ON EURO ZONEFISCAL AUSTERITY HAVE A MUCHBROADER IMPACT THAN JUST IN THE EUROZONE. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 6. THIS REACTION TO EVENTS IN EUROPE ISTESTIMONY TO THEINTERCONNECTEDNESS OF THE WORLDECONOMY. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 7. THE WIDE RANGE OF US, EUROPEAN, ANDOTHER STOCKS THAT ADVANCED IMPLIESTHAT FIRST OF ALL BUSINESS IS ALREADYGETTING BETTER FOR SOME COMPANIES. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 8. SECOND, IT IMPLIES THAT A RESOLUTIONOF THE EUROPEAN DEBT CRISIS WILLHELP BUSINESS THROUGHOUT THE WORLDAND ACROSS THE BOARD. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 9. EUROPE IS, AFTER ALL, THE WORLD’SFIRST OR SECOND LARGEST ECONOMY,DEPENDING ON WHETHER THE USA OR EUIS IN FIRST PLACE. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 10. ASIAN EXPORTERS, ESPECIALLY, ARECONCERNED ABOUT A RECESSION INEUROPE AND DECREASED SALES. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 11. ON THE OTHER HAND WHEN EURO ZONEFISCAL AUSTERITY MEASURES HELP INRECTIFYING THE DEBT DILEMMA INEUROPE COMPANIES IN EUROPE WILLBENEFIT BUT SO WILL EXPORTERS FROMASIA AND AROUND THE WORLD. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 12. THE POINT OF THE EURO ZONE FISCALAUSTERITY AGREEMENT IS TO PREVENTNATIONAL GOVERNMENTS FROM RUNNINGUP HUGE DEBTS IN THEIR ATTEMPT TOPLEASE VOTERS. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 13. THE MASSIVE DEBTS INCURRED IN THESOUTHERN TIER OF NATIONS HAVETHREATENED TO BREAK UP THE EU. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 14. THE SO CALLED PIIGS GROUP(PORTUGAL, IRELAND, ITALY, GREECE, ANDSPAIN) HAVE REQUIRED FINANCIALSUPPORT IN PAYING OFF AND ISSUINGNEW GOVERNMENT BONDS. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 15. THE SITUATION HAS BEEN SO BAD INGREECE THAT THERE HAVE BEEN RIOTS INRESPONSE TO SUGGESTED AUSTERITYMEASURES. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 16. THE ISSUE FOR LOCAL POLITICIANS ISTHAT THEY MUST SATISFY THEIRCONSTITUENTS AT HOME IN ORDER TOSTAY IN OFFICE. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 17. WITH THE NEW EURO ZONE FISCALAUSTERITY MEASURES IN FORCE THESESAME POLITICIANS WILL HAVE A SECONDCONSTITUENCY, THE REST OF THE EU ANDTHE EUROPEAN CENTRAL BANK. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 18. IF A COUNTRY DOES NOT EXERCISE FISCALDISCIPLINE IT WILL PROBABLY NOT BEABLE TO EXPECT A BAILOUT IF TIMES GETTOUGH AGAIN. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 19. FOREX TRADERS CAN PROFIT FROM EUROZONE FISCAL AUSTERITY BUT WILL NEEDTO UNDERSTAND HOW MEASURES TO FIXTHE DEBT PROBLEM WILL AFFECT THE EUECONOMY AND HOW THE EURO TRADESAGAINST OTHER CURRENCIES. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 20. FIRST OF ALL HEIGHTENED FISCALAUSTERITY IS EXPECTED TO RESULT IN AMILD RECESSION IN EUROPE THIS YEARAND MAYBE NEXT. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 21. SECOND, PERSISTENT FISCAL AUSTERITYWILL LIKELY LEAD TO A STRONGEREUROPEAN ECONOMY AND CONTRIBUTETO A STRONGER EURO. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 22. THIRD, TO THE DEGREE THAT THEEUROPEAN CENTRAL BANK FOLLOWS THEBERNANKE DOCTRINE AND PRINTS MONEYIN ORDER TO PAY OFF EU DEBTS IT WILLTEND TO DEVALUE THE EURO. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 23. FORTH, A DEVALUED EURO WILL MAKEEUROPEAN PRODUCTS MORE COMPETITIVEIN WORLD MARKETS AND LEAD TO ANECONOMIC RECOVERY. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 24. FIFTH, AN ECONOMIC RECOVERY COULDLEAD TO A STRONGER EURO. FOR FOREXTRADERS PROFITS WILL HAVE TO DO WITHTIMING. W W W . F O R E X C O N S P I R A C Y R E P O R T. C O M
  • 25. FOR MORE INSIGHTS AND USEFULINFORMATION REGARDING THE FOREXMARKETS AND FOREIGN CURRENCYTRADING, VISITWWW.FOREXCONSPIRACYREPORT.COM.