Our friend and master investor Rick Rule likes to say, "The U.S. dollar is the worst currency in the world, except for all the others." It's fashionable to point out the big problems with the paper U.S. dollar. But you should know most all countries are in the same boat… one overloaded with huge debts and unfunded liabilities… captained by smiling, well-educated pickpockets.
Case in point: the euro… the next stop on our "world currency tour."
In late December, we used Vic Sperandeo's classic 1-2-3 trend change method to nail the big decline in the euro. The euro is the paper of a tenuous currency union. Right now, it's being torn apart by the incompatible policies, work ethics, and savings rates of its members… who are as different as France is from Greece, Germany is from Italy.
Just after our December note, the euro suffered a guillotine chop from $1.50 to $1.43 (A). It then managed a flimsy relief rally into the $1.45 area (B). It suffered another value chop from $1.45 to $1.36 (C)… followed by another flimsy rally to the $1.37 level (D).
This is how bear markets conduct themselves… a stair-step series of one big step downward, a tiny step back, another big step downward, and so on. This one will end in tears.