Today, an ECB "rate setting" meeting is scheduled. This comes at a time when the common European currency is under more stress than ever. Everyone is waiting with baited breath to find out what they'll do. The consensus opinion is that the central bank will cut by 25 basis points. I think they'll do more.
Keep in mind that no fiat currency, including the euro, has any inherent worth. They are all irredeemable against anything of real value. Fiat currency has value solely on the basis of faith. People trust that other people will continue to exchange little slips of paper and electronic representations of that paper, for real goods and services. For all intents and purposes, maintaining the value of a fiat currency is a confidence game.
Sometimes, in confidence games, the perpetrators need to put on a show. There is a strong need for drama, right now, in
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