The US Dollar Is About To Inflict Carnage All Around The Planet

[Professorlocknload]

Below 666, eh? Rather sinister sounding figure for the Biblically persuaded. But granted, my concern is that someday Edwards might actually be right.

Still, with a gazillion recently created dollars coming home to roost, mostly pouring into T’s it’s difficult to see even artificially boosted short rates sticking to the wall for any significant length of time. Oh, maybe a couple basis points until all squeal uncle, then comes the paper blizzard. The rulers need a convincing “We told you that you needed us” panic to help the Proles find “Religion.”

But, either the bond market, what little is left of it, or the equity casino, can’t really call it a market anymore, is right. Highly unlikely to be both.

Unfortunately for Europe, after the wealth has been pulled, the breaking of the infrastructure begins. Especially now that the U.S. is lead by an administration that no longer needs congress or the consent of the ‘electorate’ to make unlimited international war.

Europeans might be better served here to start a bunker building program, rather than braying for more government cheese.

But then, the U.S. MIC has salesmen standing at the ready to fill orders for arms and ammo to European “Allies,” then later reconstruction bonds to fill in all the craters.

[koso_man]

Illargi, do you think the dollar strengthening will put the fed off from raising rates…the dollars will be coming home to roost anyway, why would the fed wanna make it worse?

I know that bank profits are being hit with low rates now, but the fed must know we’re on the precipice of a massive deflationary event. Its making me think twice whether they’ll raise rates now, especially if the dollar keeps rising.

[Ken G]

“People will look back at this period and have a really difficult time comprehending how so many intelligent people were convinced that central banks creating Trillions of new “money” out of thin air to buy securities was somehow accepted as “enlightened” policy.”

https://www.prudentbear.com/2014/10/the-new-mediocre-neutral.html

[Raúl Ilargi Meijer]

koso,

It’s a three step move. Raising the dollar but not interest rates is very inefficient. The Fed views this from the perspective of the banks, not the real economy. They’ve given up on the latter, if they were ever even interested in it at all. Ergo, they’ve looked for the best ways to profit from the deflationary event.

[bluebird]

Any bets whether the rates increase before or after the election on November 4, 2014?

[John Day]

And who in this world shall own what in this world, after the plague?
😮
It’s a real question, and I don’t think anything but time can answer it.

[Author]

Posts