Zeev's Turnips Patch-No Politics (ZEEV)

[fois gras]

Some commentators are talking a euro at par to the dollar. I assure you that would be the end of the union and the beginning of the attack on the dollar that is certain to come.
If you have the emergence of national European currencies as a result of the failure of the union, the mirror image strength of the dollar would instantaneously disappear. Credit default swaps would turn their vengeance on the dollar. The Drachma would be incinerated. The Swiss and DM would be the stronger units.
If the EU fails so does the USDX. With no mirror image to hold up the dollar artificially, the US dollar will fall faster than Greece’s credit.


JSMineset 5/14/10