A Weaker Euro, A Stronger Dollar And What This Would Mean For Precious Metals
A small note entitled “A Weaker Euro Could Rescue Europe” at Wall Street Journal Online, and linked to by the Council on Foreign Relations Website, relates the following:
The only way to prevent the dissolution of the euro zone might be a sharp decline in the value of the euro relative to the dollar and to other currencies. European politicians’ dreams of political union and permanent fiscal transfers are not realistic solutions to the multiple problems of the euro zone’s peripheral countries—especially on the tight schedule needed to halt the collapse of the single currency. The European Central Bank (ECB) may continue to provide additional liquidity, but experience has already shown that it cannot reduce sovereign bond yields to sustainable levels.
The peripheral countries—Italy and Spain, as well …
That the Council on Foreign Relations referred to this note as a “Must Read” at their online website dedicated to the academic classes hint at future unfoldings in Europe. What this would mean for the medium-term is a stronger dollar. This then buys time for the United States to continue expanding its technological military presence – a stronger dollar promotes US militarism -as well as means soft dollar denominated precious metals prices. Gold and silver would therefore continue their fourteen-months decline.