Posted on 05/16/2010 3:55:17 PM PDT by blam
The Euro Is Sliding Again And The Week's Barely Started -- Meanwhile Trichet Scoffs At German Inflation Fears
Joe Weisenthal
May. 16, 2010, 6:00 PM
There's still over 2 hours before markets really get going -- Tokyo opens at 8:00 PM ET -- but in very early action the euro is already falling.
Bloomberg reports trades as low as $1.2338 in early Japanese trading.
Expect to hear the word "parity" a lot in the coming days ahead, even though that's a long way off.
Meanwhile, the man at the center of the storm, Jean-Claude Trichet gave an interview with Der Spiegel in which he swore up and down that the ECB was not in fact engaged in quantitative easing (all bond purchases will be "sterilized" via the removal of liquidity elsewhere). But more to the point, he insisted that the ECB remains an independent body.
And to the German audience for whom the interview was intended -- an audience that's both upset about the bailout, and paranoid about inflation -- he was adamant that there wasn't much to worry about.
I fully understand the particular sensitivity of my German friends. But facts are facts: Inflation in Germany has never been as low as it has been over the past 11 years. The German fellow citizens can see that the euro has indeed been a good store of value over time.
Next stop: Explicit quantitative easing.
Now for some perspective, here's a lifetime Euro chart from Calculated Risk:
[snip]
(Excerpt) Read more at businessinsider.com ...
How can anyone trust the ECB? Or the EU? And, thus the Euro?
I think we are at the beginning of the end. You are right the ECB is going to follow the Fed with unprecedented interventions as it see’s fit, regardless of any charters.
I can not think that rightly or wrongly, the ECB owns, big time, the economy that is coming.
God favors the bigger battalions and the Euro is pretty big, but it is bleeding and no one knows the graph of public sentiment for it, which if one takes in the repeated votes for entry that were as rigged as a Saddam election.
Like you say, everyone is shorting, so going long for a rebound makes sense.
Actually, pre-1982 if you are lazy.
If you are not, they switched somewhere within the 1982 minting. Some '82's are copper, some are zinc. You can weigh them to tell which is which.
I've been harvesting the 1981 and prior pennies for awhile. But I'm sure it's an urban legend so no one else should be so foolish as to do that.
Nice! I usually save just the ‘wheat’ pennies.
The weight differential between the Zn and Cu pennies is significant.
I think I will wait till the Euro craters nicely before I start buying.
At that point the dollar should going into its own tailspin.
1.2264
as I write this
You said “plug nickel”.
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