The US is deflating its currency by printing money at a stupendous rate, China is devaluing its currency by pegging it to the weak Dollar and countries like Vietnam simply openly devalue their currency in order to maintain a competitive edge. Expect this trend to pick up steam; it’s now going to be a race to the bottom of the pit, and it will only end with a full blow currency crisis. Investors should make sure they have a position in precious metals (Gold, Silver, Platinum, etc), as it’s the safest and easiest method out there to protect yourself from inflation, the silent killer tax. Don’t think of it as investment, think of it as insurance just in case the house burns down. Use pull backs to add to open up positions and strong pull backs to add to your position.
Germany and France knew that they would eventually come to the table and approve some sort of package even though they made a lot of noise about doing nothing in the beginning. No one has bothered to ask why. The reason is by playing this cat and mouse game, they have allowed the Euro to lose a significant portion of its value; in effect, they indirectly devalued their currency without actually officially having to do so. Each time they put out a story to calm the markets they leave room to change their position. The story above and the just released story below are perfect examples of such ploys in action. While France and Germany have agreed to set up a fund, they leave extra wiggle room by stating that this matter would still need approval from the whole euro zone.