In order to avoid a US dollar debacle, it is important [for the US] to defeat possible credible alternatives. The only one is the Euro. Therefore, the US may have an interest in the acceleration of the PIIGS crisis. How to measure the forces at work in this grandiose scheme and chess game. Who is the weakest? What is the role of speculators? Is there a way to "influence" speculators' targets?

Gary Rogan writes:

It's more likely that the US, or more precisely Geithner and Bernanke want to to prolong the PIIGS thing for as long as possible without it getting resolved rather than accelerate it. It's hard to imagine a good outcome for them if the Euro goes completely caput in a short time. It may also be bad if it falls too rapidly with respect to the dollar. The biggest question is if ANYONE is in control. As Roubini said today, Spain is too big to fail and too big to save, and of course Italy is even more so. I don't know how to tell anything in particular, but it seems like something is up with Portugal and it's worth watching exactly what noises the US will be making about it. It's also worth watching how the Irish population will be handling being told take one for the European unity team after having rejected the whole concept so many times.





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1 Comment so far

  1. Rui Grenho on December 1, 2010 7:14 pm

    What about gold?


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