Michael, the Euro is one thing that worries me relative to the basic hypothesis I have been supporting, namely the dollar will fall when our international balance of payments gets above the $40 B monthly. I expected the Japanese yen to stay strong, but the problems in Europe, and the Sodom bed the Mastricht agreement imposes, will result, eventually in weakening of the ECB resolve, and weakening of the Euro. For now, they are still putting on a brave face, but the political tensions that the economic contraction is going to bring on will be very difficult resist. Result, the dollar vs Euro/Yen, will not change much, keeping gold in the $300/30 range for sometime even if our trade imbalances worsen. If gold breaches $300, then look out below.
Zeev
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