[Colosis]

Strong euro is bad for exports and the weak dollar could fuel inflation. The euro project is a bit like a joint account with many depositors. There are strict rules and massive fines for abusing this account.

Germany and France for years reprimanded other smaller countries for overspending the allowed 3% of GDP. Now they are massively overspending to try to get their economies back to growth, with no effect. Last week they escaped any reprimand by courting votes from other commissioners. A (pro) euro MEP who just returned from that crisis meeting in Brussels said that the sense of crisis is massive among commissioners and says that this is not at all reflected in the press.

[SAJ]

Spot on. The finmins are so worried about the temporarily macho Euro that they've begun floating the idea of currency controls (again, viz. the 1970s and 1946-1955). From a long-term currency standpoint, they've got one foot in the trickbag and the other on a banana skin. The next Euro crash will be a monster, but its a ways off.