Euro headed down thanks to euro-boomers?

So Richard Lehman is complacent about the coming baby boomer retirement "crisis" -- in the United States. Interestingly, he's not so complacent about what's going to happen soon in Europe. In his viewpoint, Europeans are too used to living on the welfare state. As I said in my last entry, he expect American boomers to just keep on working until they can afford to stop.

He expects European boomers to stop working and demand that their governments pay the promised retirement benefits -- no matter what.

Since few of them have this money (most Western European Social Security systems are in worse financial condition than that of the U.S.), they're going to have a problem meeting this demand. Also, birth rates in Europe in the past 30 to 40 have been lower on average than that in the U.S. Therefore, there're going to be even fewer workers per retireee than in the U.S.

Therefore, Western European governments are going to have to run their printing presses full-time, to send their baby boomer generation the pensions they've been promising them since they established their post-World War 2 welfare states.

End result -- the euro will be inflated and lose value in comparison to the dollar.

So the current situation where the euro is at a record high against the dollar won't last more than a few years or so.

euro baby boomer retirement crisis
euro baby boomer retirement crisis