EUR

i do not think EUR will on parity with USD. if so, china must dead already.

if china not revaluate their currency(less than 5-10%), eurusd may drop to 1.25 by the year end or beginning of the next year.

Seems to me that some guys in this forum are inclined to get their timeframe knickers in a twist. Any technician making longer term forecasts or projections has every right to identify a violation and adjusty accordingly as the market confirms or invalidates. Or are we talking about high egoes here ?

Re: Catnip "Think twice: ECB monetizing of PIGS bonds could be compared to FED monetizing California bonds. The FED doesn't buy Ca bonds. Why not? "

Sorry for the delayed response, but the answer is that the Fed does not have to. There is more than enough investor appetite, both domestic and foreign. The ECB has to buy garbage that few others would touch.
http://www.bloomberg.com/news/2010-09-17/international-buyers-increase-u-s-muni-bond-holdings-15-to-83-billion.html

The reason once again goes back to what I have been stating repeatedly, though in different hues. Foreigners have to redeploy their long USD back into the US in order to sterilize the appreciative effects on their own currencies. If they do not do this, then they must be prepared to redeploy those USD into other currencies or assets (USD denominated assets). But then that recipient nation must be willing to either absorb the US's deficit with that capital exporting nation or in turn reallocate that capital back into the USD via US Treasury or asset purchases in order to sterilize the impact on their own currencies. No one currently (or normally) wants to absorb another nation's deficit. With Europe being unable to sustain its deficit, the US is being leaned into even more heavily, hence the continued bid in UST and other US assets. We've already seen Japan's unwillingness to absorb the US's deficit with China after China decreased UST holdings and increased JPY and JGB purchases. No one wants to absorb that deficit. This is also why USD bears do not see the big picture. The world reserve currency, by its nature, must be provided in excessive supply to meet the world's demands. This necessary excessive supply along will bring many to question its soundness. If there is not ample supply of that world reserve currency, you will have deflation and depression resulting from what essentially is a destruction of money supply, a la what drove the downfall of gold as a currency or as a currency peg (limitations of physical supply in regards to its application towards both tangible and intangible value).

strong view catnips..appreciate the outlook

We all have our morons :)....Ashraf must be enjoying this close devotion from his group.