Jack the Pipper

Mr. Jean-Claude Trichet, maximum leader of the European Central Bank (ECB) understands the market implications of this surrender of authority/responsibility. Of course Eurozone state “leaders” seem quite happy to be able to “save our comrade Greece” with other peoples’ money. There is unity on that score.

In other words, don’t worry about us; we’ll worry about ourselves. But if you do find it in you to lend a helping hand then think about what your efforts might be able to do for the common currency. After all, we’re in this together, brothers.

Given the German inspiration for the events playing out in the European Monetary Dis-Union, schadenfreude is a word rushing to the front of my think skull this morning as the euro puts in a new low in this cycle against the US dollar.

We just finalized it yesterday, and it’s a quick read, packed with the latest details and graphs on what’s tearing apart the Eurozone countries and will ultimately be tugging hard on the euro’s ankles for many months to come.

It’s coincidently Orwellian to hear the land of the giant puzzle palace pretend their currency isn’t undervalued. The Chinese Ministry of Mis-information is burning the midnight oil, especially now since oil is back under $80 per barrel.

US vs. German Yield Spreads – Tracking on the recent dollar index rally…

The euro was the big loser yesterday, even when most other majors were able to either eke out gains or at least hold their ground versus the buck. Today the buck is higher versus the entire pack.

Last month, we did notice that US consumer credit rose unexpectedly. It didn’t seem to get much press, as all eyes were focused on non-farm payroll.

Have a look at this gem from Ambrose Evans-Pritchard: Is China’s Politburo spoiling for a showdown with America? I won’t comment on it since we’ve included much of these same ideas frequently in the pages of Currency Currents already; nevertheless he presents these ideas forcefully and succinctly.

How many times have you heard this little piece of inanity uttered: “Markets hate uncertainty.”? I heard it said on Friday as I was “passing through” one of the TV “financial” shows on my way to the Home and Garden Channel–the only place safe on the dial for me.