Updated October 28, 2011 : The Euro will pass away before the US-Dollar does !

The bazooka Van Rompuy is talking about and which would be used to bail out Greece, Portugal, Italy,...and the EU and its Banks, is armed with DERIVATIVES and with Credit Default Swaps in particular and the very use of this kind of bank manufactured crap would make the global financial system even more dangerous than it already is. It is clear those guys have lost any common sense.

Our opinion: All fiat paper money is a SELL! The exercise of comparing the Euro to the Dollar is secondary as they are both worth ZERO. The Euro-Dollar exchange rate is like the Devil dancing in holy water.... The single currency is functioning so brilliantly, its vulnerable members are sliding towards bankruptcy. There is no way the Euro and the EU (a complex society) will survive expensive energy! The Euro is not like the dollar in the least. Each country retained their identity, but abandoned their 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 for the markets. The Aussie , the Swiss Franc and the CanDollar are still stronger than the Euro! Gold (scroll down for €-gold) however is still number one and Silver number two! Hence one must use these fiat currencies to store short term cash and not in Euro' s nor US Dollars AND hold Gold as security/real money.

Updated October 28, 2011: €-Gold -Max. potential correction is €1080 AND expected; at this level all gaps are filled; this will be very beneficial for the future price of €-Gold and €1080 is only 13% lower ). Remember nothing goes up in a straight line and too much, too fast and too high most of the time spells a correction. BUY THE DIPS !

€ - Gold
Bullish Objective	€ 1380 - € 1520 +-
Resistance	€ 1260 - € 1380
Support	€ 1180
Bearish Objective	€ 1080
Technical pattern	bull run still intact but test of neckline possible

We started to advise to buy Gold in 2001/2002. This €-Gold chart was initially posted on July 3, 2008. It is the proof how important it is to have a € chart of Gold. Candidly, it looks very different to the Dollar chart.

Short term candle October 10	Chart comment
	September 9: double top breakout....technical indicators BEARISH September 16 - 22: uptrend intact. September 23: NO TOP VISIBLE and beware of Gold falling out of a triangle...These formations often result (in this case) a BEAR trap. October 3 - 6: BOTTOMING & acceleration holds...Euro Gold is again a BUY October 17: max. potential correction is € 1080 (-10%) October 24: expect test of € 1080 or neckline - postpone acquisitions October 27: test of the neckline not evident...especilly not if €-Gold breaks through the 1260 level as the W-reversal formation suggests may happen.
Long term candle - October 10

The Euro index - October 28, 2011 : a very, very difficult market it is.....

• The 1.32 MAL (maximum activity level) level did hold and the action is reversing as EU banks have stopped redepositing funds with the FED. Any accident in Europe (bank, insurance co., government failure) can have explosive consequences. At this time the Dollar is weakening because European Banks have stopped depositing their deposits with the American Federal Reserve. Hence the phenomenom is technical and not fundamental. In all cases one should be holding neither Dollars nor Euro's.
  

• Because the Dollar is a Reserve Currency the Euro and EU will by definition die BEFORE the Dollar does. If the dollar was to die first all other Fiat currencies would have to go at the same time and such is highly improbable. Capital will each time it flees Europe, increasingly travel to the USA (the Swiss is pegged to the Euro and the Sterling in deep problems - other Forex markets like  Norway are too small to absorb a large flow of capital) and will push the exchange rate of the Dollar up sharply and the Euro down (European commercial and central banks already redeposit funds with the US-FED because they mistrust the murky European financial institutions).

Why would one hold Fiat dollars and/or Euro's? 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 are 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, 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 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's.