Here comes the United States dollar

The United States dollar has it all time highs against the Euro.  People are fleeing European countries that are in serious trouble Portugal, Italy, Ireland, Germany, and Spain or PIIGS.  They are also selling off equities like gold and oil.  This all has forced the dollar to an eight month high against the Euro and sending up US treasury prices. 

People have lost faith that the PIIGS countries can pull themselves out of their huge budget problems.  So to avert risk investors are flocking to US treasuries.  All of this has created huge one day drops in markets around the world.  Gold was down 4.3 percent closing at $1,062.  Greek equities felll 3.89%, Portugal’s stock market lost 4.98%, Spain 5.94%, S&P500 3.11 percent, FTSE 100 2.2% and the price of oil down 5%.  As another sign of problems for the EURO credit default swaps or the cost of insuring debt of soveriegn nations has skyrocketed in the PIIGS countries.  With no sign of stopping any time soon.