Thursday, July 11, 2013

Euro and Swiss Franc

Posted on by

Nevertheless, the more BEARISH Europeans became on the US debt, the higher the dollar rallied. How was that even possible? The Eurodollar deposits dropped by about 50% and they shifted the money to domestic dollar deposits. This is exactly how capital has been moving inside of Europe buying German and Swiss assuming that is a hedge against the collapse of the Euro. A green dollar would be worth more than and red one so they moved into the USA driving the dollar ever so higher. The more BEARISH they became, the higher the dollar moved. Absolutely fascinating. In Europe, the more bearish they became on the Euro, the more stable it emerged because they were merely buying German bonds in Euros and the Swiss pegged their currency to the Euro to stop the capital inflows – another trap for the future ensuring the Swiss peg will break and they will tale a huge loss on their Euros.

No comments:

Post a Comment