Tag Archives: U.S. dollar

Gold anticipates the not-so-obvious and often completely unforeseen economic developments better than any other investment I know of and these days it is telling us that all is not well with the world and that something major is brewing out there. Words: 918

I believe that the worse things get, the better they will sound coming from our nation’s leaders/ pundits. Words: 1132

There are very compelling arguments for both inflation and deflation. The answer will eventually depend on decisions made in Washington and how people react to those decisions. For now, let’s stop fooling ourselves and admit that we don’t know. It is a problem that has to be dealt with and there is no easy medicine. Either path will be painful, but that’s what we get for our two and a half decade debt binge. Words: 1142

The conditions which would support a major correction in the gold price are not present. Should a correction from a failed attack on recent highs occur in such an environment, it is likely to be a short one. Words: 712

When Bernanke announced back in 2009 that he saw "green shoots" in the U.S. economy, it was a green light for global investors to start dipping their toes back in the water. Gradually investors started feeling better about the world and as they felt better, they started taking on more risk. It was a shift in focus, away from the mandate of "return OF capital" back toward one of "return ON capital." So, what's in store for 2010? Will it be risk-aversion or risk-taking? Words: 794

Given the ongoing crisis surrounding the euro, the vulnerability of the British pound from a continued spread of sovereign debt concerns AND the catalyst for a weakening yen, I’m expecting the dollar to continue its upward path against major currencies both in the short-term and longer-term. Words: 738

The only, truly accurate and profitable way to invest in the markets is to understand and quantify the markets differing personalities, which is what the rigorous study of market cycles does for you. Right now, for instance, although we are starting to see more negative news come to the forefront (as compared to the last nine or 10 months where the market was rallying), I can assure, the negative news you are hearing will pale in comparison to the news that will come out in the months ahead as the 40-month cycle for stocks turns down. Words: 1065

A dollar crash might happen because foreign investors decide that the U.S. has fallen into a so-called tax trap, which occurs when a nation is unable to increase revenue by lifting tax rates. This circumstance, paired with mounting deficits, can lead to wholesale flight from a nation’s assets. The Chinese will only lend money if they think we will pay it back. Words: 697

The FED chose to solve the problem of too much debt by creating even more debt by taking the unprecedented action of buying it’s own debt under euphemisms like “quantitative easing” and “debt monetization” and also covert buying to artificially force negative real return rates of interest. Through this course of action, the FED so far has been able to turn what would have been a rapid deflationary collapse into a decaying inflationary depression which is euphemistically called “a recession that is now over”. Words: 955