“The biggest category of contingent debt is made up of the various guarantees the eurozone has been handing out in the last couple of years. European Union governments have effectively guaranteed the liabilities of their entire banking sectors. They have guaranteed all bank deposits up to a certain limit. The eurozone member states have guaranteed Greek debt for three years, and they extended the scheme to the rest of the eurozone. And those guarantees will probably have to be doubled again.” – Wolfgang Münchau
FX Trading – Finally we are getting some real company on our dollar call
- The dollar will probably become a “growth currency” during the next 10 years, shedding its haven status of the past decade, as the U.S. economy outperforms Europe and Japan, according to UBS AG. (Bloomberg)
Comment: Welcome to the club, UBS. We have been singing this song since late last year. In fact, a multi-year dollar bull market call, which we have shared here, is one we saw as very similar to the 1992-2002 US dollar bull market.
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