Teflon euro killing the dollar

And so it passed, almost without notice, that Portugal needs a "bailout". At least if you watch the currency charts. The euro ho-hummed a bit and that was that. It seems that maybe the markets have realized that if euro-members crash, that really doesn't make the euro any weaker as long as the ECB raises rates, and doesn't resume monetization. Because if the weaker members get kicked out, this strengthens the euro.

It looks like it's time for what will at least be the first round of the US currency crisis. My guess would actually be that the bond-traders will blow up Spain later this year, and that might be the event that turns things around, and gets the euro-bulls throwing in the towel. But that has yet to come, and first things are going to get ugly for the USD. It looks like it's soon time to test all-time lows on the US dollar index, and if those are broken, there is going to be a psychological waterfall effect.

Remember that this nearly happened late 2009, but the US dollar was saved by Greece. This time around, it seems that failing euro-states no longer cuts it. Here's a scary chart to stare at in anticipation :