An interesting interview of John Taylor, CEO of FX Concepts, on Bloomberg, where he makes the call for a European recession, highlighting that Germany should be helping out more trying to weaken the Euro. Further, that the US will go into a mild recession next year, but not much stimulus available on the table.
He notes that in the short term until say April 2012, the Euro is a good currency, but in the long term, the currency will head down dramatically, possibly at parity with the USD or even at 90 cents.
He contends that the LTRO, an effective backdoor QE, will not see the purchase of Greek debt which he forecasts will leave the Euro within 12 months.
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