If Draghi was really serious about the "competitiveness" issue, then he would certainly be looking for a cheaper Euro that would "decisively" and "urgently" address a fundamental flaw of the Euro. It is dramatically overvalued.


If the Euro were to weaken it would be a body blow to the US economy. It would be exactly the type of situation where the US Fed would act. A "decisive" effort to depreciate the Euro would give Bernanke the excuse he needs to put a big QE package on the table.

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