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I hope that it will help you make this year a successful one.

 

First, a little background. 2010 was a turbulent year for the Euro. It went as low as 1.1$ following the terrible Greek financial crisis and subsequent bailout. Today, the Euro is trading for 1.353$ after a prolonged recovery. Even the minor bailout of Ireland, another Euro country is severe financial trouble went by with relative ease. For the time being, the Eurozone was able to withstand the problems its weaker members face.

 

In 2011, the Euro may be facing even greater problems. Spain, a much larger country than either Greece or Ireland, is facing major economic challenges of its own. With 20% unemployment and massive debts, the prospect of a Spanish loan default is nightmarish for all those who favor the Euro. Spain will not be easy (or even possible) to bailout. It is simply too big. Smaller economies such as Portugal and Italy (and some Easter European countries) may also require aid. All this will likely make 2011 a challenging year for the Euro and may lead to lower Euro-dollar prices.

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On the other hand, we have the US. While the financial crisis of late 2008 is still showing signs of slowing down the biggest global economy, there are indications that the US is steadily recovering. With very lot interest rates and financial easing measures taken by the Federal Reserve, the US Dollar may have little room to rise. This may mean that the first months of 2011 will be good ones for the EUR/USD. However, I predict that in 2011, interest rates in the US will begin to rise. When this happens, the value of the Dollar will likely increase across the board.

 

All in all, I predict a good year for the Dollar and a difficult one of the Euro. How accurate will this Euro Dollar Forecast for 2011 be? We shall have to wait until December and see how right I really am.

 

Knowing where the Forex market is going to go is always difficult. In this article, I’ll focus on just one currency, the Euro, and predict how it will fare in 2011. Will this be a good or bad year for the Euro?

 

Euro Prediction For 2011

 

The Euro is a collective currency, used by 16 countries in Europe. Among those countries are strong economies such as Germany and the Netherlands, but also weak ones such as Spain, Italy, Ireland, and Portugal. The Euro policy and central interest rates are determined by the ECB, European Central Bank. However, each country governs itself so there is financial unity but not an administrative one.

 

This makes it hard to create and uphold the best monetary policy for the Euro. The weak countries would like a weak Euro to make their exports more attractive but the stronger ones would like a powerful Euro to give them more purchasing power. In 2011, as Europe is still recovering from the crisis of 2008, we will see those conflicting pressures increase, one thing which will weigh down on the Euro.

 

In 2010, two major aid packaged were given to two small members of the Eurozone whose economy was in virtual ruin: Greece and Ireland. This led to a lot of pressure on the Euro, driving it as low as 1.1$ .

Euro trading euro fx euro forex euro yen euro pound euro base rates euro rate euro live charts euro charting euro foreign exchange euro fx euro currency. currency trading


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Euro Debt Crisis

EURO DEBT CRISIS

A popular journal in Greek stated Greek debt crises focused less on the crisis and more on the market reaction. It also stated that Hedge Funds Try ‘Career Trade’ Against Euro” and “Speculators Bet Record Amount against Euro for 4th Week” and “Europe Trouble, U.S. Opportunity” in the headline. It explains the collapse in the Euro mainly against the dollar as one of the important and profitable techniques for exploiting the crisis. The debt crisis has become self fulfilling both for Greece and Euro, both Greek and Euro bonds lost their value which makes the crisis more badly. Most of the speculators are using this favorable condition by making more bets against Euro. Based on the viewed commitment of Trader’s report, the net short conditions against the Euro have a record 12 billion dollar. Some analysts took these details at face value. 

There is also proof that most of the speculators are now trying in concert to bring down the value of Euro. The magazine also mentioned about the private meeting between Hedge funds managers and investment banks helping their customers bet against Euro by using derivatives. These speculators influence the currency markets. The Euro has down 10 percent in less than three months which is more surprising for a currency whose daily trading volume is calculated at 1.2 trillion dollars. The famous choice trade is based on the Euro falling to party against the dollar. It is also not in the good position to accept the market power that these speculators have.

But emotion has no place in forex trading. EU member states contain shaky finances which cannot be dismissed. The Euro is controlled by the European central bank over which Greece has no power. Usually in the forex trading investors like to buy one currency because they think it is going to appreciate in its value against other currencies. If all the investors have same sentiment, these purchases will cause the Euro to appreciate and the dollar will depreciate. In the European debt crisis of 2010, some countries in the European Union were at danger to default on their debt. 

This caused the Euro to fall down so investors look for the other currencies. The three big safe havens are the Treasury bills, U.S dollar and gold. These investments are regarded as less risky of all investments. The strength of the Euro is currency stability. Businesses will not face any risk from currency exchange rates and tourists also no longer to pay the price of the currency conversion. But the weakness is the Euro using countries are not able to set their own monetary policy and they should act according to the policies which are drawn by the European central bank. Greece is unable to devalue its currency to keep prices stable and increase exports to increase money. So forex traders always should keep an eye with the fluctuations of the currency value to operate their forex trading successfully. This helps them to avoid unnecessary frustration in forex trading.

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Trading The Euro Dollar Currency Pair

Trading EUR/USD

The currency that is most often traded against the dollar is the Euro. Together they are the most liquid currency pair accessible on the FX market and consequently often react very advantageously to technical analysis approaches. This report will address the common strategies that can be applied to trade the euro dollar currencies.

This aforesaid liquidity implies that the EURUSD FX currency pair is a beneficial option for support and resistance trades. Other currencies will frequently fall behind the trends of the Euro. For example if EURUSD is arriving at a major Fibonacci level it could conceivably alter its way temporarily. This alteration of direction might in addition impact other currencies which are trading against the dollar. It forms more sense to trade the major pair instead of additional ones which are, possibly, lagging the price action.

A different beneficial reason to pick out the Euro is the price of doing business linked with this currency is less costly than most additional pairs. It is not exceptional to see 1 pip spreads at liquid times as contrary to 5 – 12 on many others. This signifies that on a comparable basis the euro dollar pair affords you a head start over other currencies. Trading is a business comparable to any other and we should minimize the price of performing business where accomplishable.

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How do traders trade the euro?

A lot of traders choose to use uncomplicated support and resistance methods. It is forever better to try and follow the trend. If  this has been clearly identified it’s a case of searching for appropriate bounces of superior supply and demand zones or choosing breakout entries with the trend. Numerous people will try to use technical indicators when committing a trade on the Euro but these are falling behind the price action and, if used in isolation, can be really hard to enter by.

Often traders can distinguish quality support and resistance points, employing multiple time frame analysis, and they can acquire entries into the market with minimized stop losses and endeavour to get involved in a Euro trend trade. These can often trend for a years so it is a case of discovering the correct direction and letting the position to run as long as conceivable. It is a case of minimizing risk and increasing profit potential while trading the Euro.

How do traders learn to trade like this?

Trading is a risky business so nobody ought to ever use a live account before they have proven to themselves that they can be profitable demo trading at the very least. There are numerous demo accounts accessible on the internet that will permit people to learn how to trade the Euro.

 

Further articles can be found at this Forex Gold Silver Currency Trading Psychology site.


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Euro Millions Lottery – Massive Rollovers Generate Worldwide Interest

Euro millions is a pan-european lottery that was initially launched on the 7th February 2004. It was devised and created by the company Camelot. On the evening of February 13th, 2004, the very first drawing took place in Paris. The first countries that started euro millions were Spain, France, and the United Kingdom. The success of the euro millions lottery was evident and inspired the additions of Austria, Belgium, Portugal, Switzerland, and Luxembourg. They joined in October 8th 2004. Just 8 months after its creation. Euromillions has become the dominant lottery game in each of the respective countries it in which it is affiliated.

The drawings are held each friday evening. The drawings take place in Paris, France. The base ticket sales are €2 per individual play. Countries that don’t use the euro make the plays cost the rough relative equivalence in their own currency. In England a euro millions play would cost £1.50, and these prices are fixed rates per play. The jackpot is always provided by euromillions and the minor prizes are commonly given out by the local lottery companies that are affiliated with euromillions.

The euro millions lottery is played in a simple fashion. There are two sets of numbers, the main numbers and the lucky star numbers. Euromillions main numbers range from 1 to 50 and of these, 5 are picked. Out of the lucky star numbers there are two that are selected from one to nine as possible choices.

The chances of landing the jackpot are 1 in 76,275,360. Because of the high odds on winning the jackpot many people buy multiple tickets or join a lottery syndicate in order to decrease these odds and increase their winning chances. If there is no winner of the jackpot then the winnings are rolled over to the next week. On occasion the jackpot has rolled over to in excess of 70 million euros, which is approx £50 million pounds or millions US dollars. These massive rollover jackpots have generated worldwide attention.

One aspect of the euro millions lottery that has created contension is a rule that has only recently been introduced this being the “roll back” – this rule applies when the jackpot has rolled over for 11 consective weeks with no jackpot winner. The effect of this is that on the final week, if there is again no jackpot winner, then the jackpot prize is awarded and shared with the next tier down i.e. those people that have correctly matched the 4 main numbers and 2 lucky star numbers. The reason for this is to prevent the jackpots from growing to astronomical proportions. This is in many ways better for the lottery player as it means that on occasion when the “roll back” does occur players can get a share of the jackpot without having to get the 5 main and 2 lucky star numbers as is usually the situation. Therefore on a “roll back” week there is actually a better chance to win the jackpot.

The euromillions lottery has proven to be a mainstay and with the spreading influence of the euro it is growing faster than any other lottery in the world. With the massive rollover jackpots the euro millions draw has on offer it is sure to become increasingly popular attracting lottery players not just from within europe but from all corners of the world.

For more information go to : www.euro—millions.co.uk

Ken McLeod is an executive member of the elottery syndicate system that effectively increases your chances of winning euro millions by 3600% and allows members from all over the world to play the euro millions lottery on a weekly basis.


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British Economic Policy of the 1960s and the Euro

UK’S GOVERNMENT’S ECONOMIC POLICY OF THE 1960s AND THE EURO-DOLLAR MARKET *

A. Introduction

On the 11th May 1965, the Chancellor of the Exchequer announced that local and central Government spending was to decrease in order to restore the balance of payments to equilibrium, and to enable the nation to live within its income.

Within five months from the statement of the Chancellor of the Exchequer, Mr. Berne of the British Embassy in Germany stated that, a German newspaper Neue Zurcher Zeitung (NZZ) on the 12th October 1965 produced a lengthy analysis of the sterling crisis, and clearly pointed to the reason why the UK turned to the Euro-dollar market to relieve the Chancellor of the Exchequer of his financing problem . The view held was that, that the source of the crisis of confidence lay primarily with the UK rather than with foreign companies, most of whom had kept their sterling holdings down to the minimum since 1961, and what happened in the autumn of 1964 was a panic flight from sterling by domestic holders of it. The newspaper assumed that the UK had about one thousand million pounds to re-pay as a result of the various arrangements made since December 1964, and that of this about 10% had to be repaid by May 1965, a third by December 1967, and the rest by May 1970. About five hundred million pounds would be regained though the reversal of ?leads and lags? and other positions, and it would be possible, if the economy could be brought reasonably into balance, for the UK to recover the remaining five hundred million pounds by 1970. However, although it was possible for the UK to re-pay these amounts, the article quoted that the UK?s reserves were so low that the UK will remain under heavy strain. The article further discussed that there were talks of some transfer of UK sterling debts to the IMF, but this was not appropriate since the sterling debts were of a normal commercial nature. The conclusion was that the logical course was a long-term foreign loan and that the UK would probably, seeks such a loan. That, the main priority was first, to overcome the short-term disturbances, and secondly to have achieved some success in the introduction of long-term policies .

It soon became apparent that borrowing abroad by local authorities and the nationalised industries and the interest shown by the LCC?s (London County Council) proposal to raise a loan in Euro-dollars, was a way to relieve the Chancellor of its financing problem. Various possibilities of Long-term borrowing, were examined as a means of assisting the UK balance of payments. However, the benefit to the reserves would only accrue if the proceeds of external borrowing was applied to financing expenditure which had to be made in any case, and not used as a basis for additional expenditure .

However, it was not until 1967 (the second half of the 1960s), that the UK government actually began to investigate the possibility of its nationalised industries and public authorities borrowing on the Euro-dollar market. This argument was further developed by the Treasury by 1969, which had for some time been arguing that it would be useful for the UK reserves, if the UK could, in some form, borrow abroad. However, the UK government itself could not borrow as, although the other governments have borrowed in the European capital market, these have tended to be the less developed countries, and thus a move by the UK would have been regarded with suspicion. It was suggested therefore, that the Government encourage local authorities and nationalised industries to borrow abroad (most obviously where interest rates are low) by operating through the Exchange equalisation Account, and giving the local authority an exchange rate guarantee, in return for which a small charge would be made. In view of this proposition, Mr. Macdonald (MP Labour ? Chislehurst) asked the following question to the Chancellor of the Exchequer, on the 14th February 1969 in the House of Commons , with the proposed reply:

Question: Whether the Chancellor of the Exchequer is aware that borrowing in overseas capital markets by the nationalised industries would benefit the balance of payments, and what steps he proposes to take to encourage such borrowing?

Answer: The Chancellor agreed that there would be advantage to the balance of payments if those nationalised industries who have the power to do so were to borrow at medium and long-term in these markets. The Treasury is therefore prepared to give consent to such borrowings and, in addition, in appropriate cases, to make special arrangements to relieve the industries of the associated exchange uncertainties.

B. The Euro-dollar market

City corporations of both European and other countries had borrowed US dollars in the foreign currency market (e.g. Milan, Amsterdam, Oslo, Tokyo, Yokohama). Only UK local authorities had not borrowed externally except by taking sterling deposits directly or indirectly from non-residents. One of the most significant developments in the Euro-dollar market in 1963 has been the growth of long-term deposits. In 1963, for instance, deposits of up to three years? maturity were rare; in 1964 they were common. Paul Einzig (in the September issue of the Journal of Finance) in 1964, argued that Arab recipients of oil royalties owned most of the long-term deposits . This source of funds to the market had been growing greatly in 1963, and had compensated for withdrawals of officially owned funds. This development was welcomed in the market by the Euro-bankers, which meant that they were no longer at the mercy of changes in official policy. The ease with which the market had adjusted for withdrawals of official funds was witnessed by the stability of interest rates in 1963 and 1964. Apart from Arab investors, American corporations have been lending increased amounts in 1963 to the market. Not only had the amounts increased, but also the length of deposit. Einzig also attributed the increased volume of long-term lending by American corporations to fears of possible exchange controls in the US. Given the increased maturities of deposits, the Euro-bankers were enabled to lend for longer periods. Five-year loans were increasing, while three-year loans were commonplace. Also, Euro-funds were being used to subscribe to issues of foreign bonds in the London capital market.

Hence, the Euro-dollar market (or dollars in London) had developed into not only a short-term borrowing market, but to dollars available in London for borrowing for longer periods. Nevertheless, deposits of dollars were occasionally offered in London for periods of two years or more, but enquiries by the Bank of England suggested that these had become very rare. Apart from this market, there had been the growth of the business of floating longer-term dollar loans in London at around 15-years or more . Mainly continental subscribers had taken these up.

C. Financing the balance of payments deficit (up to the end of 1966)

The deficit on the current and long-term capital account of the UK was in the order of £200m in the second half of 1965, and £350m in 1966. There were three elements which constituted a strain or relief for the reserves: first, the balancing item, secondly the balance of payments of the overseas sterling area, and short-term capital flows to and from the non-sterling area .

The balance of payments of the overseas sterling area was deteriorating and the reserves of these countries as a whole were being reduced. The countries with large expected deficits (e.g. Australia and Malaysia) had large reserves of sterling to draw upon, whilst the oil states, which were expected to be in surplus, were not likely to accumulate the proceeds in sterling as they used to do. Short-term capital flows to and from the non-sterling area were unpredictable . Interest differentials were not favourable to such inflows, and a large outflow was always possible if there was a further weakening of confidence and that no appreciable relapse was likely without favourable differentials and some restoration of confidence.

D. Proposal of Foreign Currency Borrowing from the Treasury

On the 10th February 1969, Ministers had decided that the nationalised industries should be encouraged to cover a proportion of their borrowing needs from international capital markets . The Treasury had been examining some of the implications of this decision.

It was not envisaged that anything but a small proportion of the borrowing needs of the nationalised industries could be met through borrowing abroad. Medium and long-term borrowing in the Euro-bond and other overseas capital markets would, however, provide a significant and useful benefit to the balance of payments. During 1969, such borrowing would offer an interest rate advantage to the nationalised industries compared with borrowing from the National Loans Fund, but the nationalised industries might be deterred from using the facilities offered by these markets because of the exchange uncertainties. In order to overcome this obstacle, the Chancellor of the Exchequer had approved a scheme whereby in appropriate cases the Government would be able to relieve a nationalised industry of the exchange uncertainties associated with borrowing in foreign currencies . The scheme was as follows:

The foreign currency proceeds of a foreign currency loan raised by a nationalised industry would all be converted into sterling through the Bank of England at the going rate in the ordinary way. The authorities would undertake that all the foreign exchange needed subsequently from time-to-time for the service of the loan would be sold to the industry against sterling at this rate , and in return the industry would undertake to acquire all its foreign exchange for servicing the loan from the Bank of England at this rate. In return for this exchange cover, the industry would be expected to pay a half-yearly charge, which it is intended should be calculated as the difference between the ?all-in? cost of the foreign borrowing (including all initial as well as recurring management expenses) and what it would cost to borrow an equivalent sum from the National Loans Fund at the same date and according to the normal rules for Government lending to the industry concerned, less a margin normally of ¼% a year. Thus the industry would neither lose nor benefit from subsequent changes in exchange rates; and the interest rate margin of ¼% a year should encourage the industries to borrow in this way .

The Act, which gives an industry power to borrow abroad also, requires specific Treasury consent for each loan of this kind. Moreover, the industries would no doubt wish, and foreign lenders expect, a Treasury guarantee of the kind, which is normally provided in respect of market borrowing by these industries. This guarantee would protect the lender in case of default of payments of capital and interest. The Treasury would need to be satisfied that the terms and conditions, including the currency, size and timing of the borrowing are appropriate, both in relation to the UK?s balance of payments and to the prevailing conditions in these international and foreign capital markets .

The scheme described applied only to borrowing in currency of a country outside the sterling area. It did not apply to borrowing in a country of the sterling area, or through a sterling area country. This borrowing would not be an additional source of finance, which would allow the industries to exceed the approved investment programme. Foreign borrowing was an alternative source of finance, not a way of increasing investment .

These arrangements were brought to the attention of the industries concerned, and had encouraged them to take advantage where appropriate. The process of obtaining powers to borrow in foreign currencies was not complete, as these powers were being acquired by those industries that asked for them, as the opportunity arised ? generally when borrowing powers were increased . The industries that already possessed powers were:

? The Electricity Council

? The Gas Council

? The North of Scotland Hydro Electricity Board

? The South of Scotland Electricity Board

The Air Corporations also had power to borrow in foreign currencies. Under exchange control arrangements, they had been expected to borrow abroad to finance expenditure overseas and for the purpose of foreign aircraft. It was agreed that powers would be taken for the British Steel Corporation, and the National Coal Board had shown considerable interest in acquiring them. It was important to choose suitable opportunities for nationalised industry borrowing in international capital markets, and the issues by British public corporations would had to be properly ?marshalled? and managed. It was for this reason that the timing as well as the terms of issue would be subject to control. If a corporation was contemplating proposals to borrow abroad, they would make contact with the UK Treasury at a very early stage. The UK Treasury at the same, would immediately bring the Bank of England into the discussions. It would also be essential for any industry contemplating this kind of borrowing to use the services of a City house or houses of first class standing and experience in this field .

E. The philosophy behind the UK?s Government?s Economic Policy

In the case of the public bodies, it was one thing to have the necessary powers to borrow abroad, and another to persuade the industries to use them. The main obstacle was the absence of an exchange guarantee. Hence, the margin between the cost of borrowing overseas, and the cost of borrowing from the National Loans Fund, was not sufficient to safeguard the industries against the exchange risk for which, they would otherwise have had to carry. In general, it was clear that the UK government agreed that foreign currency borrowing was desirable and ?had? to be encouraged. The following two frameworks of argument were put forward by the Treasury which underpin this very policy:

Framework One:

In formulating the foreign currency borrowing philosophy the natural starting point is the shadow foreign rate and the rate of return on marginal domestic investment. The former shows the extent to which the UK is willing to lower the present trading ratio between domestic and foreign resources to obtain scarce foreign exchange. For the sole purpose of this analysis, the rate is taken to be 20%, and the marginal return on UK domestic investment to be 8%. Now that we have the preference rate implied by the shadow foreign exchange rate and the marginal return on domestic investment, we have an implicit time preference rate for foreign exchange. For the basis of this conceptual approach the implicit rate of discount is 10%.

Having obtained this figure, we need to consider now the implication for foreign currency borrowing policy. In simple terms, it seems to be this. Foreign currency borrowing will benefit the nation as a whole provided that the effective borrowing rate (i.e. the actual market rate plus any allowance we want to make for possible exchange rate changes) is less than 10%, and that the domestic investment project which the switched funds will finance promises a marginal return of not less than 8%. So taking this into account, it seems difficult to consider the question whether exchange guarantees should be given to encourage this borrowing until there is fairly general agreement that this or some other similar criterion is the right one. Assuming that this criterion is substantially ?correct?, we start with the obvious argument that it will be worthwhile to give an exchange guarantee if, without such a guarantee, the public bodies concerned are unwilling to borrow, even though the relative rates fall within the criterion specified above. There are, of course, then to be considered the contrary arguments, in particular the view that much damage could be done by what will be taken as a vote of little confidence in the stability of present exchange rates by the UK public sector. The argument may of course be exaggerated, and may carry much less weight after the Basle arrangements. But it seems to be that this question of exchange guarantees is logically secondary, and that we must first decide what is at stake (i.e. how much we want this foreign currency borrowing).

To conclude this framework, it is in the national interest that foreign borrowing take place when the implicit discount rate on foreign exchange exceeds that on domestic resources and when the interest rate differential between abroad and at home is less than the differential between the implicit discount rates. If the implicit discount rate for foreign exchange is 10% and that for domestic resources is 8% while the domestic interest rate is 7½%, foreign borrowing would be preferable from the national point of view so long as the foreign interest rate is less than 9½%. (the foreign interest rate should be calculated to include an allowance for any danger of foreign revaluation). So long as foreign borrowing is likely to be by foreign-currency borrowing. The fact that domestic borrowers will borrow where the interest rate (including allowances for brokerage charges and exchange rate fears) is lowest means that they will borrow sub-optimal sums in foreign currency issues when-ever the discount rate for foreign exchange exceeds that for domestic resources. There is therefore a case for giving a subsidy of up to the amount of this differential. The case for an exchange guarantee is that it is the best, or the only feasible, method of giving such a subsidy, and that the benefit of giving this subsidy will outweigh the possible dangers to confidence in the stability of the monetary unit.

Framework Two:

The second framework possesses a completely different argument than of framework one. The Public Records contains proof that the existence of a premium on foreign exchange (a shadow exchange rate) does not in itself imply that the discount rate on foreign exchange exceeds that on domestic resources (as stated in framework one). That, as long as the reference rate is constant over time, the two discount rates are identical. The implicit discount rate on foreign exchange exceeds that on domestic resources when, but only when, the preference rate for foreign exchange is falling over time.

This means that the case for subsidizing foreign currency borrowing is critically dependent upon the expected future values of the preference rate. For example, assuming that the policy of the late 1960s were to work with a 20% current preference rate and a 10% rate in the more distant future, this would justify a subsidy of up to about 1% per annum on a 15-year bond. The Government Economic Advisors would reconsider these preference rates, and it would entirely be possible that this would lead to modifications of the recommended values. As, it was difficult to envisage a situation in which the UK would be planning to be short of foreign exchange in 15 years? time than the UK were in the late 1960s. However, taking this scenario into account, this would mean that the UK could expect to have a fall in the preference rate over this period. This in turn meant that some subsidy would be justified.

This example was for a 15 year bond with a 7% British interest rate, and the preference rate falling from 20% to 10% between which the time the loan is contracted and the time the first interest payment falls due. The foreign currency borrowing would be socially preferable if the foreign interest rate is less than 7.97%, including exchange risks. Also, the difference in argument between the first framework and the second framework is the fact that the critical foreign effective borrowing rate should be the domestic interest rate plus the differential between the discount rates for domestic resources and foreign exchange, rather than the discount rate for foreign exchange.

Result

The UK Government completely agreed that the argument in favour of borrowing overseas depends on the interest rate differential between foreign funds and home funds being less than the differential between the discount rate on foreign exchange and the discount rate on domestic resources. That one only gets a difference between the discount rate on foreign exchange and the discount rate on domestic resources if the premium on foreign exchange is expected to change over the period of life of the proposed foreign borrowing. Also, the fact that there was not point in borrowing abroad just to pay it back tomorrow unless either:

(i.) The UK could put the real resource counterpart to use at home, to the UK?s profit; or

(ii.) The UK expected foreign exchange to be cheaper, or in some sense less valuable, tomorrow than it is today.

Taking this into account, with the first point was being ruled out, the second point was the only alternative left. Nevertheless, if the notion that UK preference for foreign exchange need not decline through time was assumed, the result would be that foreign borrowing is undesirable. However, due to the UK?s reserve situation in the 1960s in principle, foreign currency borrowing remained an alternative to other forms of borrowing, ways of liquidating existing assets, and reducing the UK?s overseas investment flows.

F. Conclusion

Ministers had for some time thought that medium and long-term borrowing abroad by public corporations and local authorities would make a significant contribution to the UK?s debt refinancing problems, even though the amount of borrowing that these bodies could do in overseas markets would in marginal be in relation to their total requirements. The chancellor shared this view, as did the Governor of the Bank of England, who reported that some of his central banking colleagues had expressed surprise that the UK Treasury had not so far taken advantage of the opportunities open to the UK in this direction. Some of the nationalised industries were keen to undertake such borrowing, and the UK had been equipping them with the appropriate powers when legislative opportunities had arisen. The Electricity Council and Gas Council already have powers, and the British Steel Corporation were to follow. In the local authority field, relatively few authorities had powers to borrow abroad; and there was a tax impediment in that the provision in the 1968 Finance Act enabling domestic concerns borrowing abroad to pay interest gross did not in its present form apply to local authorities. To get over this difficulty meant that legislation was required in the 1969 Finance bill, as the GLC were known to be interested in borrowing abroad, and other authorities would follow the GLC?s lead.

However, it became clear that neither the nationalised industries nor local authorities were likely to take advantage of the opportunities to borrow abroad, despite the lower levels of interest rates in some of the international capital markets, if they themselves had to shoulder the exchange risk. The Chancellor therefore approved a scheme which in suitable cases, the Exchange Equalisation account would in effect take the exchange risk, in return for a charge to the borrower which will be calculated as to leave the borrower with an interest rate advantage of ¼% a year as compared with borrowing from the National Loans Fund.

The Chancellor also considered whether this arrangement would prompt pressure for similar treatment for the private sector. As most private overseas borrowing by UK concerns at the first quarter of 1969 was to finance overseas investment in accordance, with the UK?s Exchange Control rules. The Chancellor decided that the government would not encourage borrowing by British companies for domestic expenditure, which would be in some respects at odds with current policies designed to squeeze liquidity. The defence to this decision was that the British Government were favouring the nationalised industries and the public authorities when pursuing its policies. These ?business interests? was part of a controlled programme of overseas borrowing which would advantage the UK?s balance of payments, and the UK Government was not proposing to operate this programme through the private sector.

ENDNOTE

This paper is based on the following PRO Files:

PRO PREM 13/2593: Prime Minister Files, ?1969 UK Economic Policy?, (January 1969 ? April 1969)

PRO T 312/1772: Foreign currency borrowing in overseas markets by (1) the UK Government (2) public corporations and local authorities. File Number: 2F 403/229/02 ?PART A?.

PRO T 326 ?series?: This involves a review of a range of PRO files involving: T 326 816, T 326 817, T 326 455, T 326 678, T 326 819, T 326 822, all involving, Borrowing abroad by local authorities and nationalised industries, (January 1964 ? December 1969). File Number: 2-FH 3/116/03 ?Part A-N?


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Euro Lottery

The Euro Millions lotto was originally devised by the national lotteries of France, Spain and the United Kingdom and was unveiled on Saturday The 7th of February 2004.  The first draw was on Friday the 13th of February 2004 in Paris. The United Kingdom, France and Spain were the only European states taking part at first but lotteries from Austria, Belgium, the Republic of Ireland, Luxembourg, Portugal and Switzerland also committed to the draw in October 2004.

The Euro Millions lottery or the European lottery, as it is frequently branded, pools the stakes of all nine participating European nations resulting in a huge Euro Millions lottery jackpot. With the amount of nations joining the EU increasing, this will without a doubt lead to new states registering with the Euro Millions lottery. An increase in the number of individuals partaking in the EuroMillions lotto will lead to a continuing increase of the already sizable EuroMillions jackpots.

How To Play

Each player must choose 5 main numbers from 1 to 50 and 2 “Lucky Star” numbers from 1 to 9.  During the draw, 5 main and 2 lucky star numbers are then picked at random from two draw machines containing numbered balls.

Euro Millions Prizes

The probability of grabbing the EuroMillions lotto jackpot is a remote 1 in 76 million but the odds of winning a cash prize is a generous 1 in 24.  If no one matches the drawn numbers to win the jackpot in a given week, it is carried forward to the next week which leads to an ever increasing jackpot prize.  New rules brought in on the 4th of January 2007 and became law on the 9th of February 2007 restrict the number of successive “rollovers” to eleven, with the jackpot rolling down to lower prize levels in the eleventh draw if the prize is not won.

The new rules also initiated Euro lottery “Super Draws” which happen twice each year and present jackpots in the region of £100 million.  The difference with “Super Draws” is that the jackpot must be won during the week of the draw; consequently, if there is no ticket matching all the drawn numbers then the jackpot will be paid out to the next tier in the prize structure. 

Some Memorable EuroMillions Payouts

• On the 8th of February 2008, the “Super Draw” jackpot of €130 million was collected by 16 individuals who matched the 5 main numbers and 1 “Lucky Star” number.

• In August 2007, a forty year old previous Royal Mail postal officer from Scotland scooped a Euro Millions jackpot of €52.6 million.  Up till now, this is the largest lotto win ever in the UK.

• On the 17th of November 2006, having rolled over eleven times, the Euro Millions jackpot reached €183 million and was divided between twenty fortunate ticket purchasers.

Ways To Play Euro Millions

Typically, to play the Euro Millions lotto you would have to be a resident of one of the nine participating member nations.  However, with the introduction of lottery ticket sales agents you can now obtain your required quantity of Euro Millions lotto tickets on the internet regardless of where you reside around the world.  If you are seeking a boost in your lottery winning odds, you may also consider joining an e-Lottery EuroMillions syndicate.  As a player in a EuroMillions syndicate you receive a thirty-six times greater opportunity of securing the jackpot when compared to everyone buying tickets.  With e-Lottery there are very few geographic obstacles restricting individuals from registering and consequently the existing membership consists of individuals from no less than 133 worldwide nations.

Johnny Sorrento is also an affiliate with the global e-Lottery business.


Discover the full benefits of promoting the Euro Millions and UK National Lottery syndicates to the global lottery playing community.


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Euro Millions Results And E-Lottery

Euro Millions Results

It is now viable to accept the up to the minute Euro Millions Results e-mailed to you, a service which is automated after the euro millions draw every Friday night.

On no account skip the results again, no need to go searching for earlier numbers. Receive a dated email with the Euro Millions Lottery Results at once to your inbox, no need to wait to see if a Euro Millions prize has come your way.
The most recent Lottery Results are emailed by the e-Lottery Without charge

Numerous Individuals would like a little Winning Euro Millions Results, Ever Thought Of Increasing your likelihood to win?

When someone joins with e-Lottery to raise their odds of landing some of the ultimate life altering Euro Millions Results, they will be playing with upgraded chances of 3600%, these probabilitys are a good deal greater than playing as a solo ticket individual.

Come up to and discover the improvements as a affiliate of e-Lottery for playing the Euro Millions Lottery, be a part of our elected EuroMillions Syndicate where you will detect a large increase in your weekly Euro Millions Results

If playing in a Lottery Results Syndicate doesn’t interest you, then you secure your necessary quantity of Euro Millions tickets online, from anywhere you are living in the planet. You can also see that there is at least an added 50 + major lotteries from all about the earth.

The global e-Lottery System launched the Euro Millions Lottery Results Syndicate as its subsequent product, this was an addition to the previously well-liked UK National Lotto which had a launch date of early 2002

When people enroll in a Euro Millions Results syndicate they will be allocated a position in a great squad of 39 other lottery players, allocating play of the Euro Millions online. You will be performing with 36 Lottery Lines in every Euro Millions Lottery Results syndicate each and every week.

Every e-Lottery Euro Millions Results Syndicate will be handed a set of 5 specific numbers from 1-50. There will be 2 Lucky Star Numbers which will be assured in every Euro Millions draw, adding to the Lottery Results. The grounds behind this is that e-Lottery have created a procedure where all permutations of the lucky star numbers – 9 of them will be catered for in a strict Mathematical Pattern fetching into view further Euro Millions Results

This results in individuals needing only to go with 5 numbers for securing Euro Millions Lottery Results. When playing as a solo ticket buyer the usual way you will need to agree with 7 numbers. A another reason for playing is you will only need to match 1 number of the 5 allotted to win a hard cash prize, allowing frequent Euro Millions Results.

Can any one enroll for the Euro Millions Results benefit?

Under typical situations when playing the Euro Millions the conventional way individuals would have to live in anyone of the participating European countries to get a Lottery Ticket. The e-Lottery has been designed so that everybody can join an e-lottery syndicate from someplace in the world, in truth this syndicate has now in surplus of 195,000 members in 136 countries. Bringing individuals nearer to their wishs of securing National Lotto and Euro Millions Results.

Lee May is an Internet Marketer and an affiliate of the Euro Millions Results e-Lottery Syndicates Writing And Working on the Euro Millionsfrom his office in Watford a great town in Hertfordshire.


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The E-Lottery Syndicates Euro Millions And National Lotto

e-Lottery syndicates

Offering folks several entertainments plus, the National Lotto and Euro millions. 7 years on and the eLottery is increasingly more admired providing 3 world famous products with further being planned for 2009.

The two Major Products for the e-Lottery syndicates are the National Lotto and Euro millions. You are capable to greatly raise your probability in these games. When people join in the National Lotto they will be gaining a 733% advantage over gamers playing the regular way. When you enroll in a UK Lotto syndicate you will be joining a 49 robust panel getting 88 chances at the National Lotto every week. Your likelihood when playing by means of e-Lottery syndicates are greatly enhanced, your odds are moved from 1-14 million to only 1 in 1.9 million.

Not Long following the Launch of the National Lotto e-Lottery Syndicates the Euro Millions was added giving players a fresh possibility and healthier odds. The EuroMillions was formed in Europe in February 2004.

Not unlike the National Lotto the Euro Millions syndicate allows individuals a better benefit. When you participate in the e-lottery Euro Millions you will have  3600% increased probability alongside folks buying tickets the typical method. This considerable conclusion  can be put down to the fact that both lucky star numbers are guaranteed in all Euromillons draws. Lowering the probability from 1 in 103 to only 1 in 3 of charming a ready money prize.

When you compete in the national lotto you can expect modest jackpots starting around 1-2 million pounds, should it be the euro millions you can count on them to be starting at around 11 million pounds this is down to the actuality  that loads of countries join in the euromillions. The National Lotto does have roll overs, over 42 million pounds being one of the leading  prize funds to date.

The 3rd of February 2006 by this time the Euro millions had seen 11 roll overs and a prize of a enormous 125 million pounds, this prize was divided among  3 lucky lottery winners Europes largest win.

e-lottery hordes spots for over 195,000 people of the National Lotto and the Euro Millions with syndicates prize-winning regular amounts, due to the scheme that has been shaped.

Captivating a glimpse at the former EuroMillions info may possibly un crease a new means to select your EuroMillions Numbers. I am in no doubt lottery players will have their individual systems when selecting lottery numbers. Analysing the Euro Millions may well allocate an advantage  in fine tuning this technique.

The UK National lotto published The Euro millions statistics, it will show a range of recordings for the previous 12 months and full information on every of the 1-50 euromillions numbers.
The e-lottery syndicates multi-win design narrows the probability for the National Lotto and Euro Millions Drastically. Placing members a large amount closer to the Prize dream. The method has been planned so that you have a assure to match numbers in all  game.

Lee May Living In Watford is an Internet Marketer Promoting the Euro Millions and is an Affiliate for the e-Lottery Syndicates, National Lotto.


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How To get that Hotel Bed Look with Euro Pillows

 How to get that Hotel Bed look with Euro’s

A tropical breeze, the light scent of coconut, luxurious thick pillows that kept you in bed a lot longer then you should have stayed.  Did you come home after vacation and surf the Internet looking for those perfect hotel pillows?  Have you tried to recreate that “hotel bed” look and feel at home?  Here are a few ideas to help you achieve that vacation Nirvana at home.

If you’ve ever stayed in one of hotels that feature “luxurious hotel bedding”, you’ll want to sleep in that bed forever.  You can, and for less money than you think.  With the right combination of covers, linens, and bed pillows, you can drown in sweet dreams every night.

Hotels are now featuring white linens and duvet covers instead those old ugly colored bedspreads that didn’t show the dirt and stains.  A perfect bed in today’s hectic world is an experience we need to recreate at home.  I won’t go into the statistics, but we spend an inordinate amount of time in bed, so why not make it lavish, comfortable, and inviting? 

First, start with the mattress dress it up by adding a plush mattress pad.  Most hotels use a thick polyester mattress pad, which you can find for around .  Or, you can opt for the rich, plump, plush down mattress pads that will have you hitting the “snooze” button far too many times.  Top this with the highest thread count sheets you can afford, 300 counts and up will give you good quality sheeting.  Higher thread counts last longer, hold up to laundering better, and are deliciously soft.  Although, materials like supima cotton, Egyptian cotton, or Tencel/Lyocell are super soft even in lower thread counts.  You should shop for quality fabric over thread count.  For texture and drama mix your top sheet and cover sheet with varied colors and patterns.  Top off your bed with a thick, soft comforter.  If you’re on a budget you can easily add a wonderful, silky duvet cover to your existing comforter, giving you an instant update for a lot less money. 

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Last, don’t forget perfect pillows.  Great pillows will make even the most boring bed, become an inviting oasis.  If all those scrumptious bed trimmings aren’t in the budget, spend money on the pillows!  Hotel Euro Pillows can add instant richness, not to mention heavenly comfort to any bed.  Euro pillows are larger in size then standard bed pillows, measuring a huge 26-inches square – some are larger, they plump beautifully and create an instant hotel look for your bed.  Euro pillows are not only oversized, but they are overfilled with a blend of feather and down. 

Be careful when shopping, very few retailers offer a down filled Euro pillow.  Many are down and feather blends.  Look for pillows that offer at least a 10/90 fill content.  However, for the ultimate in ultimate sleep luxury you’ll want a 27/75 fill blend, pure decadence.  With all that gushy, extra soft fill, your head won’t want to leave the pillow.  

With the addition of colorful pillow shams, Hotel Euro pillows can be stacked creating an instant headboard.  Vary pillow sizes and shame colors to add texture, and depth to your bed.  By propping several Euro pillows against a wedge pillow, you’ll have comfortable and relaxing support for reading in bed. 

How to Properly Fluff a Pillow

“Fluff from the end closest to you, bringing back the fullness that was originally there.  This might require a couple of tries before you get the hang of it. If you’re fortunate enough to have a throw pillow, this is an easy fluff. Simply pick up the pillow from the corner with a firm grip and with your free hand, pat the flat part two or three times and place back on the seat. Here’s the fun part that imparts the finishing touch. Give a karate chop directly in the center of the top of the pillow making an indentation in the middle. You’re done! You have just “poofed” like a pro.”  From lifestyle expert, Mar Jennings

How Karate Chop a Pillow

You’ve envied it in the decorating magazines. That beautifully made bed with the perfect pillow sporting a neat fold right down the center.  Even though the name might make you think of a fluffy pillow fight, this “karate chop” technique can give you a quick, fresh look.  Position the pillow on the bed where you want to add a designer touch.  Next, set the pillow on its edge.  Do a quick, light “karate chop” right in the center.  Now, pull up each corner of the pillow slightly.  Do this several times, until you get the crease depth you want.  You can also use this decorating tip for Euro style pillows on your couch.  A Euro pillow with a “karate chop” crease is a fun, different way to add some panache to any room.

A few things to look for when buying Euro Pillows:

Make sure your Euro pillow is “leak proof”.  This means making sure the weave of the fabric is tight enough to keep the feathers from poking through.  The best fabric is for basic filled bedding is 230-thread count cambric cotton. 

Purchase the highest quality fabrics you can afford, they will be softer and longer lasting.

Look for a combination of down and feather fill for the most comfortable pillow.

Look for pillows with fabric that is waterproof.

If you have allergies, look for one of the new hypoallergenic pillows, such as Primaloft.  This fill is so great a mimicking down-fill; you won’t be able to tell the difference, and in many cases, they are less expensive.


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Trading Opportunity – Dollar to Remain Firm on the Euro

There have been many traders who have bought the euro against the dollar but we think there optimism is misplaced and the euro will move lower and we haven’t changed our view and see further weakness for the following reasons…

The expansion of the US quantitative easing program and the start of the expansion of the money supply in March saw investors start to sell what had been seen as a “safe haven” currency 0 but the dollar is in not going to collapse just yet for the following reasons.

The world is still in a recession and there will, be a few more months of bad economic reports to see safe haven flows move into the dollar. The recent strength in stock markets looks like short covering and the big trend is down. Investors have made a lot out of the Fed printing money – but so to are all other major economies so this is not a factor in the short term.

A cheaper US$ is inevitable to restore the global imbalances reflected in America’s huge current account deficit but this will not become a factor until we see an improvement in the global economy and were not there just yet. While the one way traffic of dollar buying maybe over, the dollar will remain firm in the short term.

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We expect other currencies to vary in their fortunes against the dollar; we see further room for euro weakness and think it looks overvalued for the following reasons.

Euro Interest Rates took it up now there Taking it Down

We have been euro bears for months and we are being rewarded for our view long ago when it was up at 1.60, we said it would probably target 1.20 and it is and the reason for this was, the whole rally of the euro from the par level, was simply based upon interest perceptions that the ECB would hold or raise rates.

While the ECB continues to talk tough on interest rates, citing concerns of a liquidity trap whereby rates are so low that growth will be unresponsive to additional easing but this is not the real problem the real problem relates to the Euros value in international purchasing terms. The ECB is the odd central bank out in its stance on interest rates as it continues to resist aggressive cutting. the more it continues to hold off the inevitable the more the euro zone economy gets hurt and its getting hurt right now.

Europe is deep in recession and the outlook is not pretty -first quarter GDP decline set to far bigger than the sizable Q4 economic contraction. The latest industrial production data points to a faster deterioration than in the UK and weak consumer confidence is reflected in declining retail sales.

The strong euro threatens to make is widening the current account deficit. The fiscal stimulus package looks weak compared with the US one. The inevitable result of all the above is – The euros yield advantage will be wiped out and the euro will fall.

1.40 Looks about the best we will see on the upside and we see a move back down below 1.35 and probably below 1.30 in the coming weeks and maybe even a move back to 1.25.

We have been short this big trend since 1.59, as regular readers of our reports know and it’s a big trend and its not over yet; expect more weakness and more profits. Continue to sell the rallies on falling momentum and hold shorts.

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