So the euro is down a % or 2 because of the Greek debt drama. Generally currencies go down on debt drama when the debt is in a foreign currency and it’s feared the govt will have to sell local currency to get the fx to make the payments. For example, the peso might go down should there be concern over Mexico paying the IMF in dollars. But with Greece this isn’t the case, as there’s no fear they will sell euro to get euro to make payments. But the players sell euro anyway, because that’s what you do when there is a debt crisis. Then they have to buy them back, with no state selling to help them cover.

What’s been exposed yet again is a world that doesn’t understand its monetary systems, including central bankers who don’t understand banking, as well as the mainstream media and all of the politicians and their finance ministers talking and doing the big stupid at the expense of their electorate, which also doesn’t understand it enough to have any awareness whatsoever of the total lack of expertise at the highest levels.

Meanwhile, at the macro level, deflationary policy continues including negative rates, QE, tight fiscal, structural reforms, and all that goes with it. And debt defaults, should they happen are also deflationary. And all of this deflationary bias is also evidenced by most all market prices.