Monday, November 09, 2009

Latent Volatility Continues To Build In The Euro Zone

We have been bearish on the Euro for a long time. Our bullishness on the dollar while the world was partying hard and the dollar was plowing lower was predicated on many coming dynamics. Most of which are clearly still not understood by the keepers of the status quo. ie, Global bureaucrats. That we have entered the eye of the storm and volatility has temporarily receded has not changed a single major theme we have talked about on here over the last four years. As I have written before, I believe coming crisis is headed for a Euro area near you.

That Trichet and other unelected Euro zone bureaucrats set economic and social policy for the sovereign people of Europe, is a great tyranny that has been thrust upon the people of Europe. A tyranny that the sovereign of Europe will only clearly understand as this crisis metastasizes. The seeds of volatility have not been vanquished. In fact, they are still germinating. A worst case scenario is that the Euro as a currency medium is completely repudiated. We shall see how far volatility takes this crisis but as I have said before, I would not at all be surprised for this dynamic to develop.
posted by TimingLogic at 11:55 AM