EUROZONE

WHY EURO WILL KEEP ON LOWERING ON SPANISH WOES ?

MOUNTING CONCERN ABOUT SPAIN WILL KEEP THE MARKETS NERVOUS  IN THE UPCOMING WEEKS AND WORRIES ABOUT THE IBERIAN NATION’S FRAGILE ECONOMY WILL INTENSIFY.

SPANISH 10-YEAR YIELD WILL GO SOON MUCH ABOVE 6 % PUSHING THE EURO MUCH BELOW THE $1.30 LEVEL AND CREDIT DEFAULT SWAPS WILL BE SKYROCKETING SOON…AS SPANISH BANKS WILL BECOME MORE RELIANT ON EUROPEAN CENTRAL BANK FUNDING.

SINCE THE SPANISH GOVERNMENT WILL NOT BE GIVEN TIME ENOUGH BY THE MARKETS TO RESTORE THE ECONOMY TO HEALTH, OUR EXPECTATION IS A $1.10  PARITY FOR THE EUROZONE  BEFORE END OF 2012 !

TO US INVESTORS WILL SEEK SAFETY IN THE US DOLLAR AND IN GOLD.

PHLDUCX