After all the excuses and all the bad luck, it seems increasingly clear the European Central Bank is at a total loss as to how to bolster confidence in the euro.

The ongoing spiral of decline in the value of the euro following the latest rise in European interest rates only puts the spotlight on the bafflement prevalent within the ECB over just how to rescue the failing currency.

Their problem, as one analyst put it this week, is that every reason to sell the euro has been acted on whereas every reason to buy it has been ignored. Thus everyone who has bought into the currency has been burned and increasingly dealers see no future in continuing to gamble on the currency.

Closer to home, the threat of inflation tied to the weakness of the euro remains a real concern. That could spell real problems for the economy, as growth fuels inflation.