Saturday, April 4, 2026 
The Euro, Treasuries and Gold
Nobel Prize winner Professor Robert Mundell, whose research laid the groundwork for the introduction of the euro, is on the wire in an interview with the Frankfurt General Newspaper (Frankfurter Allgemeine Zeitung).
According to Mundell:
-The Euro will “go back down substantially.”
-The Euro’s steady appreciation against the dollar in the last several years threatens to devastate the European economy.
-The higher Euro will tend to tip the euro area into mild deflation, worsening the difficulties of debtors and the solvency of the banks.
On the subject of the Euro, Professor Mundell is not merely a contributor—he is the moderator. Listen well.
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Keep an eye on Treasuries (FT)
“But concern about the bond market is more meaningful. It is vital to keep US rates down, to revive both the housing market and the health of the banks. That is why the Fed is buying bonds. If even this drastic action is not enough to keep rates low, then these policy aims are in jeopardy.”
As the stress in the system intensifies, the case for being long treasuries solidifies.
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Gold and silver garnered attention last week as both took noticeable jumps. As I have written, the asset class to own for the big move over the next few years is precious metals.
Gold
Peace
i’m a bit confused now. If the worst is over, like you’ve mentioned wouldn’t it tell you the market should be up?
Are you still Long HL?
do you have any other recommedations at this time? I’ve finally dumped my SRS after a beat which i will not get into.
Comment by jason — June 1, 2009 @ 2:03 pm
Still long HL
Comment by Mr. Volatility — June 9, 2009 @ 1:36 pm
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