The only problem with the QE theory is that take Bridgewater - the worlds biggest hedge fund. YTD up 38% on moves in treasuries, gold and a few other products that benefited from the deleveraging this year. Ray Dalio is still saying that the USD has the luxury of being able to print itself, while the Euro and many other currencies don't have such a luxury. So the dollar is temporarily out of fashion, but the basis for it being sound over a longer term move is there. So while a trillion dollar QE debasement may be enticing to a USD short, there seems to be a dislocation of recognizing that the dollar has more flexibility while Euro, Pound, etc are not so lucky.
Ghost, To some degree fiat currency has lost its appeal. Do you see paper continuing to decline vs precious metals and hard assets in general? And do you see paper potentially free falling in a rush toward other stores of value?
The Euro is high because of Uncle Axel and Uncle Juergen and the mkt's perception that this "dynamic duo" and their friends are calling the shots.