Q: After only bad news from the EU, why has the EUR/USD only dropped a little?
A: Because EUR/USD is a currency 'ratio' - it is a ratio with the USD as the denominator just as in basic arithmetic. If the USD goes down, the ratio value goes up.
Q: USD going DOWN in valuation?
A: Ben Bernanke indicated a likelihood of US dollar "printing" if the EU situation doesn't improve. That would mean large scale USD deflation and the EUR/USD ratio would remain kind-of-close to "not dropping severely" since the USD denominator would then drop rapidly to keep the fraction mostly intact relative with the worthless Euro.
Q: Why would anyone bother for all that?
A: The US big banks, Chase, BAC, and many other "institutions = insti's" have transformed many USD into EUR (Euros) in order to get higher rates-of-return (similar to interest rates) than the US insti's can get in the US at the present time. (Read the blog, it is already a clear fact.)
Q: I still don't get it?
A: If the insti's lose everyone's (your) money once again (from a risky failed currency exchange) after already causing a similar credit collapse in 2008, they will cause a 2nd WWFC = world wide financial collapse and will probably not be forgiven anytime soon.
Q: Why can't the US FED let the EU deal with itself?
A: Because there are so many USD $$$ in the EU from the large institutions - it's been called "too big to fail" for the second time. Ick.
