Race to the Bottom (BA, F, GLD)

With Europe pledging nearly 1 trillion dollars to stem the tide of bad debt the default phase of the crisis appears to be over, however, the currency devaluation phase is just beginning. Since January 1, 2010 the value of the Euro against the dollar has dropped by more than 12%. This may be just to Brussel's liking. A weak Euro helps European exports against their American and Chinese competition. This is bad news for Boeing BA and the US automakers like Ford F, however, Volkswagen and AIRBUS are likely to gain. In a world of an artificially low Reminbi, and official government policies of export, the question is where do all the good go? All companies can't be net exporters. If the major currencies of the world are actively trying to devalue themselves, or are helpless against the devaluation of their currencies because of large debt loads, where's the safe place to put your money? The doom and gloom points to a more reliable source of currency, namely gold. The SPDR Gold Trust GLD has gone up almost 8% since January 1, 2010. Is gold too high? Ask the leaders in Brussels, Washingtong and Beijing if their currencies are too low.