Dear CIGAs,

The currency intervention, both real and oral, is a waste of time as the euro will trade well above the $1.50 level. This is not because it is worth it but it is another inverse to the US dollar which is headed considerably lower.

The mistake that governments always makes in its assumed omnipotence is that intervention, certainly at a key number like $1.50, is that when the market realizes it is over moving momentum goes ballistic on the upside. That renders all the talk, skewed figures and wasted intervention money as not only useless but contra-productive.

In a floating system governments should know they cannot not enforce currency parity rates.

Parity rates are fixed currency highs and lows from the Bretton Woods days.

All talking heads on this subject were gleams in the eyes of their parents back then, not even in diapers, but do claim expertise.