Gold And The Euro

Posted by on Feb 29, 2012 in Uncategorized | No Comments

Almost scary but the Euro is finally reacting like it should to money printing and circularity (if not Ponzi). It is weak not because there will be defaults but because the “solution” does nothing but perpetuate the weak countries and zombie banks. Maybe it’s an aberration but the Euro is selling off because of the European QE. Gold isn’t down in $ terms just because of reduced likelihood of US QE but also because European QE might hurt the dollar. Maybe Draghi plans on playing the devaluation game to increase European exports?  Early stages, but first the stock market has disconnected a lot from moves in the euro, but now the euro moves seem to be disconnecting from the “Europe is saved – must rally” phenomena.

For what it’s worth, they should create an International Central Bank because ICB would definitely have the confidence of the markets :)