The Swiss National Bank threw a big monkey wrench into that anti-euro strategy today by announcing a fix of the Swiss Franc at 1.2 to the euro. The SNB's intent to buy unlimited euros would have destroyed any bearish options initiated against the euro prior to that announcement. It remains to be seen whether GS will apologize to any hedge fund clients that acted on its leaked report's bright idea. Investors also now have one less safe-haven currency available, as capital fleeing to quality recently bid up the CHF and priced Swiss exporters out of markets. Now the SNB's frantic franc printing will inflate the price of any imports Swiss consumers need.
Price inflation spawned by desperate central banks is rapidly becoming commonplace worldwide. Soon no currency will be a pure safe haven (although a basket of them may be useful as portfolio diversifiers and arbitrage instruments). The sovereignty crunch is in full swing. John Robb at Global Guerrillas is proving more prescient by the day in tracking this truly global crisis of capitalism.
Full disclosure: No position in GS at this time. No position in Swiss francs (commonly noted as CHF) or any CHF-derived instruments (such as the ETF trading as ticker FXF) at this time.