Denny - If this post is out of line, please PM me and I will delete and self moderate myself in the future. I have posted on economic issues many times over "at the other board" over the last two years and while most have ran their course for a few days eventually they all got deleted. I do not know if this forum is friendly to economic talks, or if this post is welcome. If this line of discussion is not disired just let me know I and I wont do it anymore.
I work in the financial industry and have been watching the ups and downs for many years and sometimes post my thoughts on what I see and what concerns me. Right now, as in tonight, there is an absolute disaster in the making over in Europe going on. Tonight there are some huge fireworks underway, and the net affect is a clear reversal in the us dollar.
Basically the story is relatively simple, Greece is about to default on its' sovereign debt. But along with Greece is Ireland, Spain, Portugal, and Italy in the same boat. They all share a common currency in the euro and all of them are running out of options. Today some 1.47trillion in ECB/Bankof England covered bonds were also downgraded which questions the cashflow of ECB banks. The dollar in turn has been rocketing - absoutely shot north tonight. The front month futures being at 77.66 last I saw.
This is a key reversal, well, anything north of mid 76 was key, but this is on heavy volume and strong. When Europe opens in a few hours I expect it to continue the watershed.
In a few decades, we will read about this in history books, but for the observant - tonight is the start of the death of the Euro. Think of revisiting 1930s world to watch the CreditAnsctatz collapse if you had a time machine. A key moment in history. If you are short us dollars tonights futures markets would be the place to get out of such a thing. Expect fireworks. I do.