“The differences between the fiscal trajectories of the various eurozone states are of degree only, not direction. In this game, we’d put our bets that Germany — the last AAA standing — will call the shots. And they could well kick Greece or one of the other paltry PIIGS outta the union.”
As this forecast unfolds in real-time, hot money is again fleeing for the greenback. The euro is down this morning to $1.274.
The dollar index — of which the euro makes up 57% — is up to 81.24. The “DXY” has risen for 13 straight days, something it’s never done before.
Thus it stands at the high end of the range where it’s traded since Fed chief Ben Bernanke gave a wink to the world in Jackson Hole, Wyo., in August 2010 and all but said “QE2” was in the bag.