Dollar Status and Banks...
When I broached this subject many months ago once again I was one of the only ones that I know of that recognized the Dollars cycles or currency cycles if you will. Now Jeffery Gundlach (the bond king) is saying the same thing almost word for word. Of course when Mr. Gundlach talks everyone listens. Me, not so much...lol.
When it is a recognized trend is when these sorts of things quiet down for a while so that not too many people can benefit from the banks having to provide the liquidity or the commercial traders on the opposite side of the trades of most of the institutions or funds that trade in the open market.
In case you don't really understand why the Dollar rises and falls it was designed so that one particular country's trade balance sheets did not get to far skewed one way like it is in the USA. Trade deficits have been run for decades in the US. Even with the rising or falling Dollar. The idea of course is that when one countries currency is strong it gives the people the means to buy things from other countries where the currencies are not so strong. Kind of an ebb and flow of capital in a way that benefits all involved and of course it works in reverse when the country with the strong currency weakens it. This is the theory of course in global trade. However with deficits climbing through the roof in most developed countries over the past few decades it has completely thrown this cyclic process out the window. When you have as much debt and deficits as developed nations do at the moment it doesn't really matter any more as long as someone buys your debt and bonds.
What the US Dollar does from here is anyone's guess. It may fall further or rally furiously if global climate destabilizes. So far the crowing of the gold bugs and commodity bugs gets louder by the day.
If indeed the Dollar is poised for a collapse it won't happen over night. You are looking at a decade long process for which we have just entered. Will the EURO head back up to the 1.6000 or greater mark once again?
I doubt it but then again when debt no longer matters why shouldn't it. Weaker countries that can't afford the EURO as it is seemed to be bailed out on a regular basis and it doesn't seem to matter to anyone anymore. With central banks around the globe working in tandem it is no wonder the markets have been so confusing for the past ten years. You simply cannot do anything by the books any more or by what basic economics tells you should happen. The markets are no longer free. They stopped being free about ten years ago (that is if they ever were in relation to the rigging that goes on).
I think you will have a rally before the fall. So be on the look out for that at this particular point in time.
Banks never cease to amaze me. Loyd Blankfein has the dubious gall to say that "American values will endure". Coming from this sort of parasite one might take that with just the grain of salt that it is. It's like a thief telling you that he will look after your home. Loyd fails to realize that American values have already fallen off the cliff and so have the social fabrics that tie them together. It is not whether they survive but rather what can be salvaged at this point. He and his ilk helped create this by completely obliterating the line between what is right and wrong.
They parade around in their expansive suits thinking that in some way they are doing good. Most are clueless to the damage that has been done already regardless of the pillage and rape that they have done in the name of good. Shame is not something that these fellows understand. Nor humility. They have no place in this corrupt industry that serves only the special few and itself. Is it any wonder why people want to flock to cryptos. They are more than sick of it and more than sick of central banks bailing out the rich and richer.
If banks were what they are supposed to be we'd all be much wealthier. No you would not have gazzillionaires but you would have some equality. It never ceases to amaze me how people line up to give them their hard earned cash. Insurance (as I have mentioned in the past) is the only other scam with similar corrupt morals.
Survival of American (and global) values would require the complete removal of these entities and their ilk and a redesign of the monetary system. Until that happens, no, values will not survive. Cheers!
When it is a recognized trend is when these sorts of things quiet down for a while so that not too many people can benefit from the banks having to provide the liquidity or the commercial traders on the opposite side of the trades of most of the institutions or funds that trade in the open market.
In case you don't really understand why the Dollar rises and falls it was designed so that one particular country's trade balance sheets did not get to far skewed one way like it is in the USA. Trade deficits have been run for decades in the US. Even with the rising or falling Dollar. The idea of course is that when one countries currency is strong it gives the people the means to buy things from other countries where the currencies are not so strong. Kind of an ebb and flow of capital in a way that benefits all involved and of course it works in reverse when the country with the strong currency weakens it. This is the theory of course in global trade. However with deficits climbing through the roof in most developed countries over the past few decades it has completely thrown this cyclic process out the window. When you have as much debt and deficits as developed nations do at the moment it doesn't really matter any more as long as someone buys your debt and bonds.
What the US Dollar does from here is anyone's guess. It may fall further or rally furiously if global climate destabilizes. So far the crowing of the gold bugs and commodity bugs gets louder by the day.
If indeed the Dollar is poised for a collapse it won't happen over night. You are looking at a decade long process for which we have just entered. Will the EURO head back up to the 1.6000 or greater mark once again?
I doubt it but then again when debt no longer matters why shouldn't it. Weaker countries that can't afford the EURO as it is seemed to be bailed out on a regular basis and it doesn't seem to matter to anyone anymore. With central banks around the globe working in tandem it is no wonder the markets have been so confusing for the past ten years. You simply cannot do anything by the books any more or by what basic economics tells you should happen. The markets are no longer free. They stopped being free about ten years ago (that is if they ever were in relation to the rigging that goes on).
I think you will have a rally before the fall. So be on the look out for that at this particular point in time.
Banks never cease to amaze me. Loyd Blankfein has the dubious gall to say that "American values will endure". Coming from this sort of parasite one might take that with just the grain of salt that it is. It's like a thief telling you that he will look after your home. Loyd fails to realize that American values have already fallen off the cliff and so have the social fabrics that tie them together. It is not whether they survive but rather what can be salvaged at this point. He and his ilk helped create this by completely obliterating the line between what is right and wrong.
They parade around in their expansive suits thinking that in some way they are doing good. Most are clueless to the damage that has been done already regardless of the pillage and rape that they have done in the name of good. Shame is not something that these fellows understand. Nor humility. They have no place in this corrupt industry that serves only the special few and itself. Is it any wonder why people want to flock to cryptos. They are more than sick of it and more than sick of central banks bailing out the rich and richer.
If banks were what they are supposed to be we'd all be much wealthier. No you would not have gazzillionaires but you would have some equality. It never ceases to amaze me how people line up to give them their hard earned cash. Insurance (as I have mentioned in the past) is the only other scam with similar corrupt morals.
Survival of American (and global) values would require the complete removal of these entities and their ilk and a redesign of the monetary system. Until that happens, no, values will not survive. Cheers!
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