FISTAM (Farcical, Idiotic, Stupid, Troubling, Agitating and Moronic) – Those are the words that I came up with as I pondered just how far this prank has gone. Looking back at the low points for the Euro ($1.18), there was initially a concern that the Euro would be devalued by the currency markets who envisioned a sovereign failure. Funny how that can become a heavy weight on an economy and their respective currencies!

Back then, the Euro leadership put together a $1 trillion backstop that was meant to support the Euro and the ailing economies. The shear force and amount that was threatened to fight the bond and currency vigilantes was enough to stop the falloff and stabilize the currency. But now it has gotten to a point that every word that is whispered from Trichet has the Euro driving higher. He has become the #1 Euro cheerleader.

Moreover, there must be a special team that he employees whose sole job is to intercept any negative commentary about the region or the currency in order to immediately defend it. Just yesterday, Briefing.com noted:

Easy come, easy go; as soon as Rehn comes out in support of eurobonds, Juncker comes out and strikes down the idea; bottom line is that Trichet is making this his goal for the remaining five months of his presidency so it will remain a hot topic until the.

Then there is also that other situation…   You know, the one where any news is good news for the Euro. Even if the EU has to pony up an extra $75 billion more than was expected to bail out Greece, the Euro goes up. If economic reports are good in the U.S., the Euro goes up. If economics in the EU are bad, the Euro goes up. I am starting to think that even when the Euro goes down, it is actually up. (At least against the U.S. dollar where the heavy correlation to equity and commodity prices appear.)

According to the BOE’s effective exchange rate valuation, the Euro is within range of its historic valuation. Even so, think about how far below valuation the U.S. dollar is and the overvaluation of the Japanese Yen. Then consider the economic situation in Europe and the fall-out from the ongoing trouble in Greece, Portugal, Spain etc. It is amazing to see how many continue to funnel investments into the Euro. Or maybe the amazing thing is how Trichet continues to provide a laughable defense of the region, without even smirking.

Well played sir… Tell me, Mr. Trichet, what happens when the real set of books are found?