Sinking Feeling

"You hear that Mr Anderson? That is the sound of inevitability."
--Agent Smith (The Matrix)

The most surprising thing to many market watchers over the last week is the euro's ongoing weakness in the face of the EU's huge sovereign debt bailout announcement.

After an initial pop, the euro resumed sinking like a stone, easily slicing thru the 124 cross rate on Fri. Some pundits are amazed that the ECB hasn't stepped in with a massive currency intervention to stem the decline.

It's hard not to wonder about the effectiveness of such action should it unfold (and it may unfold this wkend). Perhaps more folks are catching on to the folly of fiat currency and the inevitable end game.

That's one way to interpret the strong action in gold.

position in gold