Euro and €-Gold
Updated February 14, 2020: All time high and bull-wedge + Fresh breakout!
European Authorities can now LEGALLY steal bank deposits and block the withdrawal of smaller amounts. Because of the Bail-In legislation, any depositor has become a creditor! Hence the € 100,000 guarantee/insurance is a worthless JOKE.
|€ - Gold||All-time high
||€ - Gold-month|
|Bullish Target||€ 2130
|Bearish Objective||€ 1280|
|Technical pattern||Fresh BREAKOUT
"We started to advise to buy Gold in 2001/2002"
The Euro-Dollar: Secular trend of Euro is up and of Dollar is down.
|Short Candle||Long Candle||Monthly|
- The Euro is not like the dollar in the least. Each country retained its identity but abandoned its currency without realizing they were in fact surrendering economic sovereignty. Capital is by buying German debt in Euro's forcing the Euro higher while in fact making repayment for the weaker countries (FPIIGS) even worse. Instead of devaluating the debt, it is in fact appreciating at a time when the economy of the EU is declining. In other words, a story with a bad ending.
- The demise of the euro and the return of national currencies will allow for proper allocation of investments and resources. It is the best thing that could happen to the markets.
- The Euro-Dollar exchange rate is like the Devil dancing in holy water...During the process, a LOWER gold price can be overcome by a CRASHING Euro. This is a normal phenomenon during a DELEVERAGING process.
The single currency is functioning so brilliantly, its vulnerable members (Greece, Italy, Ireland, Portugal, Spain) are sliding towards bankruptcy. There is no way the Euro and the EU (a complex society) will or can survive expensive energy!
- The ECB and IMF have BROKEN the back of the Euro Camel...You have to be out of your mind to stay invested in Euro's after what happened in Cyprus and what is happening in Greece. Amazing is that the Euro remains so strong versus the US-Dollar...or does this happen because the US-Dollar is in more trouble than the Euro!?
- The European Central Bank put a floor under the eurozone by agreeing last month to buy unlimited quantities of bonds of any troubled member state that accepts the conditions of a bailout program. ECB President Mario Draghi made clear the bank will use all its tools to defeat anyone betting on a break-up of the monetary union.
- Remember this is a CURRENCY WAR...and a synthetic Dollar Shortage (see Dollar Fundamentals) which could be followed by a real war. The Cyprus holdup was a test case and a similar happening can be seen in Europe (Greece?!) any day now... Also, one may NOT forget that the Middle-East War and the inflow of refugees in Europe are part of the BIG picture.
- The ECB doesn't have the flexibility the FED (Federal Reserve) has. However, to bail out Greece, Portugal, Italy, AND the EU AND its Banks, they use exponential amounts of Fiat Money armed with DERIVATIVES and with Credit Default Swaps. It is clear those guys have lost any common sense. SWAPS and DERIVATIVES work in the short run but they make the Global Financial System even more explosive.
- Europe and the Euro are BANKRUPT and now it's just guessing as to WHEN the final act (the Black Swan) will land. DO NOT DELAY action... and be advised the authorities will take all they can on their path to death. Having said this, a Major Crash has never been forecasted by the Media/Press. On the contrary, they are excellent contrary indicators! Before the END GAME breaks loose, expect to see the Authorities do ANYTHING in order to let the Euro (and Greece, Portugal...) survive. The fact that Germany, Poland and soon also Switzerland are repatriating the national Gold holdings may indicate that we may see severe problems with the US-Dollar first. Very hard to write a scenario. Like things look now (June 2015) the Euro may run into problems first. The endgame, however, has still not been played yet...everything is possible!
- Why would one hold Fiat dollars and/or Euro? The Nominal Yield is almost zero and lower than the official inflation rate, the Stock Market is collapsing….Real Estate is collapsing…The Banking system is in trouble...The bulk of derivatives is labeled in Dollar... imagine what can happen if the Chinese stop buying dollars...and this is exactly what they are doing. Check our investment table for the Fiat currencies we think is far better...more
- The Euro is just like the Dollar FIAT PAPER MONEY worth ZERO. However, it takes time before the Herd stops believing the Propaganda and static delivered by the Talking Heads and Authorities and becomes aware of this huge Ponzi scheme [Madoff was jailed for what they are doing]. Remember Fiat paper money is not only paper, but it is also DEBT. By holding on to it, you hold on to somebody else's DEBT...The Euro is a complex fiat currency, the result of a complex society (the EU) and controlled by the ECB. According to Tainter, it will not survive the rising cost of energy. Stronger Fiat currencies (compared to the US-Dollar) are the Canadian Dollar and the Australian Dollar. Important is to know that there are A LOT MORE DOLLARS which can be sold than Euro.
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