Wednesday, May 9, 2012

100509 Euro move

For a big EUR south move you need
1.  EU trouble and
2. US economic growth and normality. 
If you don't have both, no big euro south side and potential for euro upside due to the structural improvements and the long term USD diversification

People like PIMCO's Bill Gross and Jan Hatzius at Goldman Sachs are telling their customers to prepare for QE3, to combat a slowing U.S. economy

The Chinese are buying all this Gold so that when they finally allow their currency to be backed by Gold, in some percentage. It may not be 100%, but a 25% backing of Gold, would the renminbi the most attractive currency in the world.

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