EURUSD Opens Gap Down To 1.3598

Tyler Durden's picture

If there is one currency which can move almost 1000 pips lower in 10 days, the EUR it is. After Chinabot gave up on supporting the broken currency, whose viability is only better to the even more doomed US Dollar, but not before an epic run to safety sends the USD into a Volkswagen-like historic short squeeze, and after Goldman openly called for QE from the ECB (and not just the EFSF monetization foreplay which now looks like it may not even pass) the currency has taken out pretty much all support levels, and at the current rate may tumble to sub 1.30 in the next 72 hours. Gold opens in less than 2 hours: the latest response to the flight from fiat should be amusing.

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CClarity's picture

For the reams of paper that will also be required to file all the lawsuits that ensue.


Highrev's picture





Predicting what WILL happen.



BaBaBouy's picture

Euro should be fixed @ 1 TO 1 with the USD, I.E. they are both Fiat Crapola...

BaBaBouy's picture

Tzee Greeks are Birthing a brand new property surtax.

Yep, That'll surely fix things...


Greece imposes new property tax to plug shortfall Greece announces new property tax to contain 2011 deficit, says can achieve 2012 surplus

TruthInSunshine's picture

The EUR will be at par with the USD within three months - assuming it isn't dissolved altogether well before then (and for those who think the dissolution of the EUR isn't a very strong possibility, I suggest you hone your analaytical skills).

The only way that the Eurozone is saved is by massive dilution of the EUR through the kind of manic printing that will make even The Bernank (aka Sir Print-A-Lot) green with envy, but Germany is not likely to go along with this plan, as it a) dramatically reduces purchasing power of Germans, b) wipes out the savings and retirement accounts of Germans and union members (unions are very strong in Germany), c) a weak EUR doesn't help Germany as much as it would have in the past as Germany now already outsources much of its manufacturing to eastern europe, the U.S. and Mexico, d) it forces current and at least one future generation of Germans (and maybe two future generations) to accept a materially lower standard of living as Germany is stretched thin in supporting the basket case welfare states that form the overwhelming majority of the EU member states.

This is the moment of reality for the EU. It either ends now, with Germans denying their politicians and policy makers the ability to sell Germans into indentured servitude, or two or three generations of Germans are sacrificed on the alter of irrationality in order to kick the can further down the street in attempting to prop up an inherently and fatally flawed experiment for a few more months/years at best.

CrankItTo11's picture

Soon, all fiat currencies will be fixed together ... at zero.

Fish Gone Bad's picture

That is so sad... because its true.

falak pema's picture

well if USd= Euro = Zero, problems solved. Greece has NO debt. The Pigs don't get slaughtered. Brilliant solution. No debts but all deads. We will all die debt free and full of PM which we can't eat.

Id fight Gandhi's picture

A moment of silence for all the trees that fell to make this possible.

Ahmeexnal's picture

Quantum financial energy drop.

The energy gap means one and only one thing: the system has emitted a drachma.

WmMcK's picture

And a tachyon ( a sub-atomic particle devoid of good taste).

CrankItTo11's picture


That's because they're chopping down more trees so they have more paper to print their "money" on, right?

GeneMarchbanks's picture

It sure is, friend. It sure is. An eye for subtlety you have;)

Ahmeexnal's picture

They should just make polymer banknotes like Australia.

bob_dabolina's picture

I think you mean they are planting cotton. 

Money is made out of cotton, not paper. 

jerry_theking_lawler's picture


"paper" money is made from cotton/linen blend...

Long-John-Silver's picture

Most of the money created is in digital files. There is not enough room left on the planet to stack physical paper "money".

been there done that's picture

So a falling Euro is usally negative for US stocks? can't wait to see futures as I am holding short over weekend.

Flore's picture

your ransquawk news ticker isn't working for days in a row now

Jasper M's picture

You say that lie it's a bad thing. 

HedgeFun's picture

You are correct sir.  I own lots of Timber for the paper printing bonanza

CClarity's picture

That's the sound of European printing  presses reving up.  Could we see 1.20 by month end?

DeadFred's picture

1.30 by the end of the week, 1.40 by the end of the month. You're forgeting about Uncle Ben and his magic money machine.

CClarity's picture

Much to Ben's dismay, the US$ will continue to appreciate until OPEC announces it wants partial payment in gold.  Then fiats go crazy and Greece's 1 yr rates of 100% look normal.  Just saying . . . 

Spitzer's picture

A run from a currency with no trade deficit to one with a 50 billion a month trade deficit. That sure makes sense.

Common sense seems to be winning out since the US debt downgrade.

I was 96% gold stocks and 4% short CAD financials. Made 7.53%

$ bulls are being led to the slaughter house.

DeadFred's picture

I'm thinking the dollar chart is going to print this spike up then down that will stand out like an obscene monument to this period in history for years to come.

Ahmeexnal's picture

7.53%?  Daily? Weekly? Monthly? Annually?

VIX or FAZ will get you more than that daytrading.

Annually, silver is over 100%


Edit: OK, 7..53% since US debt downgrade.

Should have traded FAZ one day.

DoChenRollingBearing's picture


But, Spitzer, I do not trade.  It has always worked out badly for me.  Gold stocks have the usual risks FOFOA warns about (taxation, etc.).  Don't buy gold stocks from Peru without waiting to see what Ollanta Humala may do!  If he IS a Chavez clone, then miners THERE will be led to the slaughter house.

So I just do (and having been doing for decades) what our Trail Guide suggests:

Buy physical gold!

US$ may go up vs. the Euro (short term). Their problems are grave.  And yet their 10,000 tonnes are not much bigger thena our 8000 tons.  Per capita would be about the same. 

The whole Euro angle is about the only one I have trouble with when it comes up in the freegold discussions.

bob_dabolina's picture

Last time I checked long-term gains on gold are taxed at 28%, in addition, because of Obamacare every transaction over $600 has to be reported on your 1099 per section 9006 of the Patient Protection and Affordable Care Act (transaction has to be reported by the buyer) 

DoChenRollingBearing's picture

My understanding is that gold is taxed at 28% as well.  Although I believe they got rid of the $600 reportable abomination.

So what?  If you must sell your gold, that's what coin shows are for.  Or your local black markets, where you can meet lots of interesting people, including those who would KILL you!

UGrev's picture

I thought that was shot down?

sqz's picture

Safe havens are about liquidity and size.


There is nothing more liquid and large as the US Treasury market. So, you better believe it when traders tell you in times of panic the USD gets bid up. Short term you can very much be USD bullish because the opposite side would be insane structurally, while at the same time *HATING* yourself for having to buy such a crappy piece of paper in terms of mid/long-term fundamentals.


In fact, I seem to recall Jim Rogers stated he had this positioning setup leading into this weekend.

PeterB's picture

At least someone gets it

Barb Dwire's picture

So Sunday night Gold margin calls followed by Monday night one too?

Mongo's picture

Major Kong rides the currency bomb

Long-John-Silver's picture

For anyone who has no idea what "Major Kong rides the bomb" means.

hardcleareye's picture

I just love that scene!  Slim Pikens at one of his best....  but not as good as Blazing Saddles!

Cursive's picture

Long time coming and I'm still not believing it.  RIP, Eurofantasy.

RockyRacoon's picture

This could be very painful for many.   Including those who don't know what a Euro is.   Funny how that happens.   Funny sad that is.

ISEEIT's picture

Pain is the new normal. Stop feeling sorry and get used to it. I will employ the key word once again for effect:


Ahmeexnal's picture

We can only hope and pray that the innevitable brutal war that this economic crash will unleash is contained within the eurozone borders.

gwar5's picture

Very true RR. Going o be lots of pissed off Europeans. Swiss savers must feel totally betrayed righ now.

The CHF is going to take it in the shorts again. No pun intended.



Fish Gone Bad's picture

When I talk to everyday people about the problems in Europe and the debt crisis, they look at me like I am from another planet.  Some are polite and tell me they have no idea what I am talking about.

In our history books there were paragraphs that start out something like, " ... and then a war broke out."  NOW I can see how people wrote that.  Fortunately for me, I am but a simple man with few expectations. 

gratefultraveller's picture

Yeah, I know what you're talking about. I used to get the same look from my american colleagues 4-5 years ago when I suggested that they get out of real estate and paper, and buy PMs instead.

UGrev's picture

I was talking to my neighbor today who is from Ukraine; I specifically asked him how much time we have left here.. He said 10-15 years before it gets as bad as it was in Ukraine. Given the number of differences there are between us and them.. I'd say that means about 3 years tops before this starts up warring factions in the US. 1.5 years until bread lines start to pop up on a regular basis. 

Ahmeexnal's picture

I'm sure his english is not top notch. He must have meant months, not years.

DoChenRollingBearing's picture

@ Rocky

We are indeed in a new era.  Lots of bad things look like they are going to happen, as it is TOO LATE to get out of this box without a lot of pain, like you wrote.

Popcorn hoarders may want to break some out soon...  Futures on gold (etc.) open in less than 40 minutes.

H H Henry P P P Paulson's picture

Not as big of a gap as Buffett's cornhole will be after getting fisted from his BAC investment.