If the euro does tumble again -- and we think it will -- we must expect the ECB to orchestrate another round of currency intervention.

This is why Europe is still an unattractive venue for offshore investors, and why the euro is as cheap as it is.

In recent experience, any report that shows Germany's economy faltering has been bad for the euro,

We expect a hike of 25 basis points and probably 50 basis pints, ... Any smaller rate hike or no rate hike at all will cause a big sell-off of the euro on all cross rates.

We expect a hike of 25 basis points and probably 50 basis pints. Any smaller rate hike or no rate hike at all will cause a big sell-off of the euro on all cross rates.

With less credit available, less growth is possible. So we are looking at a bad situation here that we fear can only get worse.