Euro Is Headed Towards A New Weekly Closing Low Against The Dollar

Our buddies over at Government Sachs have been bullish on the euro and bearish on the dollar. Apparently, they were unable to manipulate policy decisions governing the movement of both since they have been exactly wrong. Goldman Sachs is going to be on the wrong side of many trades in the future. We are in a period driven by fundamentals where they cannot manipulate policy and be assured of outcomes. The biggest trade they are on the wrong side of is We the People. More about that on Sunday's post.

I pulled this graphic yesterday but the euro/dollar trade is about making a new weekly closing low. The Eurozone continues to unravel. The only question is whether we will witness a classic Kabuki theater presentation or a very dramatic improvisational street drama.

I'm voting we'll eventually see the dramatic improvisational street drama. ie, In my opinion, we ain't seen nothin yet and it could get very ugly. National sovereignty is back in vogue. It has taken longer than I expected courtesy of the profligacy of bureaucrats who love spending other people's money but once the party gets cranked up, it's going to be deafening. The German people are not going to be bailing out half of Europe. Nor is the other half of Europe in need of a bailout going to continue to pad the balance sheets of France and Germany. Spain and Greece's economy, like that of the U.S., would roar with the right economic policies. While bonds of may European countries are cratering comparative to Germany today, only a fool would be buying German bonds here. Big trouble for Germany is dead ahead regardless of how Eurozone dynamics play out.

Bureaucrats seeking to usurp national sovereignty are in serious, serious, serious trouble. Well, if we must be blunt, their gig is up. It's just a matter of letting fundamentals run their course. We all may be part of the human family but our unalienable rights are protected by sovereign rule of law. Not by bureaucratic idiots espousing a borderless view of the world where the rule of law is always the lowest common denominator. ie, Our oft-remarked race to the bottom of the barrel that involves massive fraud, corruption and no effective rule of law.

Booyah! Buy! Buy! Buy!