The Strongest Bear Market in the World

This week, we take our euro “mythbusting” to a new level. After all, the euro just hit a new level…
 
As we noted last month, one of the big myths in the marketplace is that despite the huge government debt problems plaguing Europe right now, its multi-nation currency, the euro, looks like it is holding up relatively well. We say, “Look again… But look at it in terms of gold.”
 
#-ad_banner-#You see, the problem with conventional euro price quotes is they value the currency against other weak paper currencies, like the U.S. dollar and the British pound. Gold, on the other hand, is “real money” (even “The Greatest Currency Trade of the Millennium”). But it’s not used in the conventional calculation.
 
Today’s chart uses such a calculation. It displays the euro in terms of gold over the past two years. As you can see, when priced in gold, the euro isn’t holding steady at all… it is plummeting. Just yesterday, it registered a new downside breakout to close at an all-time low against gold. The glacier-like bear market of paper currencies versus gold continues…