As an effort to maintain the stability of euro, last week, the European Union (EU) and the International Monetary Fund (IMF) jointly introduced a 750 billion euros rescue mechanism. However, this big [blank check" can only temporarily alleviate the investors` concerns, but can not heal the serious wound to the recovery of the global economy brought by the debt crisis. The fiscal deflation policy released by the European Union members recently, sparks the continous falling of euro currency exchange. Recently, rumors comes from the market that France had threated to quit Euro area system, Germany also reconsidered to resume Mark as the official currency to avoid the collapse of euro area, Beat by abovesaid news, exchange of Euro to Dollar fell under 1.2234 dollars on 17, creating new low in 4 years. For this, President of European Central Bank, Trichet admitted that after burst of European debt crisis, situations of dumping euros in the market were just like that of bankruptcy of Lehman Brothers in 2008. He warned that :[European economy is trapped into the most serious situation since the WWII , even the WWI and the market response is worse than that of 2008 worldwide economic crisis."Notice the Brand Which are on the Top : ed hardy

Investors sold euro on a large scale: on 17th, investors sold euro on a large scale, the exchange rate of euro against dollar fell to 1.2330 dollars or 1.2250 dollars, which were the crucial points, reaching the lowest since April, 2006. Last week, Euro is the major currency with the biggest devaluation for dollars, and range of total drop for dollar surpassing 3%. Investment institions now commonly predict that Euro would drop again and lower expectation of Euro exchange rate. It's estimated by UBS that the USD-EUR exchange rate will breaks the level of 1.15 USD by the end of this year, while probably drops to 1.10 USD by the end of next year. The foreign currency analyst of New York Mellon Bank predicts that USD-EUR exchange rate will even drops to parity value level by the end of this year. Japan Earnest Asset Management Inc expected that the decline condition of euro is expected to last for a long time and the next support level of the euro convert the dollar is 1.2000 dollars and the euro convert the yen may fall to 112.00 yen.Take the Opportunity!! Love all Are Obsessed with ed hardy

Since investors transfer to gold for avoiding risks, on 17, internation gold prices counted by euro and pound both created new high, and Swiss MKS Company predicted that, gold has begun to take place of status of reserve currency, and gold price would be higher furtherly. At present, European debt crisis is likely to expand to the entire world, leading the drastic violation of global stock market, which made some large-scale hedge fund suffer a great loss; investment portfolio shrank several billion dollars. Statistics showed that during the first week in May, some hedge funds had lost all the income in this year. Among all those funds, Blue Trend Fund of London (10-billion-dollar scale) declined by 7.57% in net worth; RivalAHL Fund of Man Group plc (20-billion-dollar scale) fell by 3.3% in net worth; Renaissance Institutional of America decreased by 3.6% in net worth. The euro urgently needs fiscal reformation: Trichet said ECB and the euro area member states governments must take decisive action to prevent the risk of continuously spread. EU Economic and Monetary Affair Commissioner Rehn said on 15th:

EU will take all necessary actions to support Euro. Market predicts that European Central Bank may postpone day of increasing interest until the forth quarter of 2011. However the profound problems of European Area Economy can not be solved by empty promise. On 16th, German Chancellor Angela Merkel said that due to "the great differences of economic strength and debt levels" between the euro zone member countries open the door to the speculate action against the euro. Starke, chief economist of European Central Bank thought that, subsidiary planning could address the symptoms, not the cause, [ what we gain is time, there would be nothing besides this." He pointed out that, only Eurozone members execute thorough economical reformation, reduce deficits, the catastrophe could be appeased.

The German government said it will require the other euro members to adopt fiscal policies similar to its Balanced Budget Act which is more stringent than the current rule in euro zone stating that the deficit of a euro zone member state can not exceed 3% of its GDP. It's required in bill that the deficit of Germany federal government in forbiden to over 0.35% of GDP. The state governments of Germany are forbidden to have any deficit. Now, Schauble, the fiscal minister of Germany is formulating a over-all revolution proposal. The IMF finance monitor report on the global deficit affairs expects that, by 2015, the average share of government debt of developed economies to GDP, including the United States, Japan and west Europe, would have increased from 73% in 2006 to 110%. The IMF has urged developed economies to greatly reduce spending and raise taxes so as to try to cut their debts to 60% of GDP by 2030.