Want Proof Of Dollar Doom, Just Look At The Euro

I wrote an article last week describing how the current price of the euro is a strong indicator that investors know the US dollar is toast. About one year ago, Greece started having massive problems with its debt. If you were lucky enough to go on a European vacation during this time, you would have found that your US dollars had more purchasing power than usual. This was a result of investors taking their money out of euros and putting it into dollars.

Whenever something happens in a country that threatens its’ finances or stability, investors will pull their money out of that currency and put it in a currency that is more stable. This is why the Japanese Yen dropped after the recent earthquake and tsunami.

Now let us look at the currency markets right now. Greece has started having big time troubles again. Right now when they sell bonds to raise money, investors are penalizing them with a rate that has been above 22% for a two year bond. This is mathematically reflective of a calculation of a 70% chance of default by Greece.

Today, Spain surprised inventors by skyrocketing to almost a 24% unemployment rate. This is a huge euro zone economy also. This traditionally should have sent money flying out of euros into many currencies including the dollar.

Therefore, we have the euro currency on the brink of implosion and we are seeing the euro still hold all time highs against the dollar. This can mean only one thing at this point. Huge investors, with tons of research and staff at their disposal still think the euro currency is a safer bet than the US dollar.

The rest of the world, and all of our big currency movers know that our US dollar is in deep trouble. The dollar is quickly approaching an all time low against the average of all major currencies measured against it.

My point is, if all your money is in dollars, get the hell out now. I will dedicate a new section on my website www.navigatethezoo.com to give advice on ways even middle class people without a ton of savings can protect their money.