Euro Slips on Interest Rate Speculation

CEBR gives Eurozone 99% failure rate over 10 years

(NEWSER) - Welcome to the year that the Eurozone begins its breakup and slides into certain doom—or so says one economic think tank in Europe. There is a 60% chance that "at least one country (and probably more) will leave" the euro in 2012, the head of the Centre for Economics and Business Research says. He adds that Greece's departure seems "pretty certain" and Italy will "more likely than not" follow suit, the Telegraph reports. More»

Leaders also discuss North Korea

(NEWSER) - Japanese Prime Minister Yoshihiko Noda met with Chinese President Hu Jintao in Beijing today, and emerged with a number of deals—including one that will marginalize the US dollar in Asia. The countries agreed to promote direct yuan-yen trades, the Wall Street Journal reports; until now, the money has usually been converted to dollars first. Japan will also hold yuan in its typically dollar-dominated foreign-exchange reserves. More»

For a period of three years

(AP) - The European Central Bank loaned a massive $639 billion to 523 banks for an exceptionally long period of three years to steady a financial system that is under pressure from the euro zone debt crisis. It is the biggest ECB infusion of credit into the banking system in the 13-year history of the euro. The ECB is trying to make sure that banks have enough ready cash so they can keep on lending to businesses. Otherwise, a credit crunch could choke off growth and spread the debt crisis to the wider economy through the banks. More»

Italian bond sale drives price south

(NEWSER) - The euro has dropped below the $1.30 mark for the first time since January, after a less-than-ideal Italian bond offering stoked fears over the Europe's ongoing debt woes. The currency at times sagged as low as $1.2994 in European trading, after swinging between $1.2989 and $1.3038 last night in New York, the Wall Street Journal reports. And a research note from Commerzbank predicts it'll keep on dropping today. More»

Foreign Policy lists 10 quiet but essential world events

(NEWSER) - What events and trends flew under the radar in 2011 but could erupt into massive headline-grabbers in 2012? Foreign Policy rounds up the top 10 "stories you missed" this year.

1. India grows its military: India is now the globe's leading weapons importer, accounting for nearly 1 in 10 international arms transfers.
2. The euro's allure fades: Eastern European countries once excited to join the euro zone are balking. Poland, Bulgaria, Romania, and Latvia have all postponed. So much for the euro fixing their economic problems.