The European politicians think they can prevent a collapse by outlawing short-selling. What these morons fail to grasp is that once a market turns down and confidence vanishes, the ONLY support is short-covering. Without that, you get the 90% declines as was the case during the Great Depression in the USA. They were hunting down shorts aggressively and nobody would play the short-side resulting in a steady erosion of the market value.
Our long-term forecast for the decline in the Euro and even the pound start to make sense as we look ahead beyond 2015. The first leg is the rise in the currencies in a deflationary spiral. This is the same impact on the yen how it rose with the economic decline, the rise in the dollar between 1980 and 1985 with that economic decline, and of course the rise in the dollar during the Great Depression.
The pound and the euro will break only when the confidence collapses which is soon. The rise in the dollar will then put economic pressure on the USA as takes place with every economic downturn.
The world economy crashes always from the peripheral regions and it spreads back to the core. Thus, we are seeing this patter in Ukraine and rising civil unrest in Europe. This trend will eventually hit the USA starting as early as 2016.[/i]