Last week, EU and IMF jointly launched out acid plan reaching 750 billion with a purpose to keep stable of Euro. While this “rubber check” with quite large of fund can only relief worries of investors for a short time, which can hardly handle serious damage caused by debt crisis for world economic recovering. Plus Eurozone member country continuously have issued financial deflation policy recently, which stroke continuous fall of Euro exchange rate. And it is rumored in the market that France once threatened to retire from Eurozone system, and Germany once reconsidered to restore use of Mark as official currency to prevent breakdown of Eurozone. Hit by news above, rate of Euro to dollar decline under 1.2234 on 17, which is the lowest point in 4 years. Jean-Claude Trichet, the chief of European Central Bank made a response for it that situation that underselling Euro after European debt crisis is similar to that of bankrupt of LEH.N. He warned that:" The economy of the European countries in stepping in to the most difficult situation ever since the Second World War, even the worst since the First World War. The reaction of market towards crisis is even worse than the galobal financial turmoil in 2008."Lately Beyoncé Knowles was Criticized for Wearing

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Investors undersell euro widely: Investors undersell euro widely in 17th. Recession Chic – How to Be Fabbest on a Budget The exchange rate of USD-EUR drops below 1. Why Shop links of london charms for Firefighters2330 USD, 1.2250 USD key supporting level, create the new low record since April, 2006. Last week, euro’s exchange rate against dollar was the lowest, down by over 3%. Investor agencies predicted that euro would continue to depreciate, and they all lowered the expectancy of euro’s exchange rate. UBS Group predicted that, exchange rate of euro for dollar would drop to 1.15 dollars, and to 1.10 dollars in the end of next year. A foreign currency analist in New York Melon Bank analized that exchange rate of euro for dollar would drop to parallel level in the end of this year. Japan Shinkin Investmene Management Company estimate that the drop of euro will definitely last for a long time. The next supporting level for USD-EUR is 1.2000 USD, EUR-YEN probably will drop to 112.00 yen.

For investors invest gold to hedge in turn. The international gold price with euro and pond as the valuation created a new record in 17th. It's estimated by Swiss MKS company that the gold is to take the place of euro reserve, and the gold price will rise further. At present, the European debt crisis is likely to spread to the whole world, leading to high volatility in the global stock market. The situation made some large hedge funds suffer big losses in May, with its portfolio shrinking billions of dollars. Data shows that only in the first week of May, the losses of some hedge funds canceled out the gains so far in this year. For example, the net value of London Blue Trend Fund (with a scale of 10 billion US dollars) shrunk 7.57%, the net value of Man Group’s Rival AHL Fund (with a scale of 20 billions US dollars) fell 3.3% and the net value of American quant fund, Renaissance Institutional, lost 3.6%. The euro zone urgently needs fiscal reform. Mr. Trichet said the ECB and other euro zone members must take decisive actions to prevent the spread of the risk. The EU Economic and Monetary Affairs Commissioner, Olli Rehn, on 15th said that

European Commission would take all necessary measures to support euro. And the market predicts that, European Central Bank would possibly to delay rate hike time to the fourth quarter of 2011, however, serious problems of Eurozone economy could not resovled by showing attitude on stage of senior officials one by one. On 16th, the German Chancellor, Angela Merkel pointed out that it is the big gap between the economic strength and the debt level of the euro zone member countries that makes the speculation against euro possible. The Chief Economist of ECB, Jürgen Stark believes that the rescue plan solves the surface problem only, but not the deep problems. “We gain time only, nothing else”, he said. “To end this crisis, the euro zone countries must thoroughly reform their economies and reduce the deficit”, he added.

Germany government expresses that they will remand the Euro area members to unveil the fiscal proposal similar to the Germany full budget method, which will be stricter than the active rule in Euro area that the deficit should not be over 3% of GDP. The bill required that the deficit of baning German federal government is more than 0.35% of GDP by 2016;Each German states will not have any deficit after 2020. At present, German Finance Minister Wolfgang schaeuble is developing a set of comprehensive reform program for the euro area. 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.