There is a tremendous amount of paper money swirling around the globe. The various central governments created the very monster that will attempt to consume them… all for a buck or two. With interest rates being held at a sustained low, money is looking for a return. Shorting currencies is one such method of creating a return on investment. If you put enough money in play, you can start a death spiral against a currency and the wolfpack has its sights set on the Euro. They are “selling” the Euro in hopes that it will go down then buy back their position at a lower price thus pocketing the difference. This last weekend was the tipping point of another global crisis. The sovereign debt bubble will pop. The only question is “when”. As it happens, I expect gold and silver to skyrocket since they are the only currencies without an inherent liability attached to them.
Greece, Italy, Ireland, Portugal, and Spain all need to cut spending and they don’t want to pay the piper. The socialist view of government is failing. Initiating an austerity program shortly after they were just told “all is well” is causing riots in the streets. That is the risk on a global basis.