Japan will continue its radical quantitative easing but the experiment is getting dangerous. The Bank of Japan is effectively exporting its deflation to its trade competitors and inviting a currency war that could shake the world.Read More »
The Chinese yuan continues to gain stature on the world financial stage, overtaking the Japanese yen to become the 4th most-used currency for global payments, boosting its claim for reserve status.Read More »
U.S. Dollar Strength Suggests Continuing Decline in Canadian, Australian & U.K. Currencies – and Price of Gold – Here’s Why
This article suggests that the Australian and Canadian dollars, and the British pound Sterling, can expect to decline significantly relative to the U.S. dollar in the months ahead and gold to decline even further relative to industrial commodity prices. Here's why.Read More »
The U.S. Dollar Index has fallen through support at 80 once again. If this current decline trend continues it will drop below 79.20 for the first time in nearly two years. This could pave the way for a deeper decline below the 76 level and signal a continuation of the downtrend that started in 2002.Read More »
Below is the list of the top 10 strongest currencies in the world, as measured by their percentage of the foreign trade market based on their combined interest in the world's 3 foreign exchange markets.Read More »
In an odd twist of fate the future of the U.S. dollar is in the hands of Asian governments [and particularly China and Japan. Let's hope they continue to put their own interests first.] Here’s why.Read More »
Stocks are up. Bonds are expensive. Dollar cash is unlikely to preserve purchasing power in an environment of negative real rates. Diversifying to a basket of hard currencies might help to mitigate some of the risks out there. It clearly adds currency risk but in an environment where there may not be such a thing as a risk free asset, it might be a risk worth pursuing...Read More »
Is the First of Many Currency Crises Just Now Unfolding? Are Gold & Silver About to Take Off As a Result?
I expect the eventual endgame to this whole Keynesian monetary experiment that has been going on ever since World War II [will] finally terminate in a global currency crisis. [That being said,] I'm starting to wonder if we aren't seeing the first domino - the Japanese yen - start to topple...[It has] cut through not only the 2012 yearly cycle low, but also the 2011 yearly cycle low and never even blinked [and should it continue its steep decline] and break through the 2010 yearly cycle low [of 105.66] I think we have a serious currency crisis on our hands. Needless to say, if the world sees a major currency collapse... it's going to spark a panic for protection - to gold and silver. Wouldn't it be fitting that at a time when they are completely loathed by the market they are about to become most cherished? [This article analyzes the situation supported by 3 charts to make for a very interesting read.] Words: 620; Charts: 3Read More »
No matter how you look at it, the U.S. dollar is very weak - very close to its all-time lows. If the value of the dollar says anything about the world's confidence in the U.S. economy, the message is quite pessimistic. The only good thing to be said is that there is a lot of bad news that is priced into the dollar. It might be tough for things to get much worse. (Words: 1054; Charts: 7))Read More »
What Does Current Global Crisis Comparison with Those of '08 and '10 Mean for Stocks, Bonds, Currencies and Commodities?
How does the current behavior of the global financial markets compare with the two recent crises, namely the great financial crisis of 2008/2009 and the minor one in 2010 when the sovereign debt crisis in the eurozone developed? [I have analyzed 15 aspects of the markets and have concluded that over the next 2/3 months we should see, among other things, increased volatility, declining S&P 500 and MSCI World indices, a bottoming in the 10-year U.S. Treasuries yield, renewed U.S. dollar weakness, renewed strength in the price of gold and silver with silver outperforming that of gold. Take a look at the 19 charts below to see for yourself.] Words: 825Read More »