The Federal Reserve has pursued the unprecedented monetary policy of lowering rates to zero and increasing their portfolio from 500 billion to over 4 trillion. But as the Fed reminds us, there is a cost.
The US Dollar Index is sitting at 94.62, just above a critical support zone at 93-94. Meanwhile, the Trade-Weighted Dollar Index has pulled back ~3.4% from its high on Jan20’16. It is hard to tell that long USD is a consensus trade because investors have lost their conviction.
Color revolutions would never be enough; Exceptionalistan is always on the lookout for major strategic upgrades capable of ensuring perpetual Empire of Chaos hegemony. While it ain’t over till some fat man in the Brazilian Supreme Court sings, the whole developing world should be fully alert – and learn the relevant lessons, as Brazil is bound to be analyzed as the ultimate case of Soft Hybrid War.
It's no coincidence that three major BRICS nations are simultaneously under attack - on myriad levels: Russia, China and Brazil. The concerted strategy by the Masters of the Universe who dictate the rules in the Wall Street/Beltway axis is to undermine by all means the BRICS's collective effort to produce a viable alternative to the global economic/financial system, which for the moment is subjected to casino capitalism. It's unlikely Lula, by himself, will be able to stop them.
One question now dominates the global macro discussion: has subdued global growth and trade become the norm in the post-crisis world? That is, have lackluster growth and trade become structural and endemic rather than transient and cyclical? Spoiler alert: Yes.
Global growth leading indicators are screaming it, Baltic Dry Index is screaming it, PMIs are screaming it, BRICS are living it, and now Ifo surveys are showing it: global economy is heading into a storm.
The Olympic Games are scheduled to begin on August 5.But will Rio de Janeiro be prepared amidst an economic recession, a looming public health crisis, delayed infrastructure developments, increasing crime rates, and numerous other problems that have rapidly developed over the past three years?
Amongst all corrupt aristocracies (and that’s every aristocracy), America’s takes the cake. The International Criminal Court will begin to have credibility if and when it starts to prosecute American leaders such as George W. Bush and Barack Obama, but not a minute before that time. Western gangsters lead the world right now, and Western political leaders are their agents — merely fixers, for those elite gangsters.
“As chair of the G7, I need to seek solutions regarding the stability of the region as well as the whole world. I believe appropriate dialogue with Russia, appropriate dialogue with president Putin is very important.”
"The chaos that one day will ensue from our 35-year experiment with worldwide fiat money will require a return to money of real value. We will know that day is approaching when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars or euros. The sooner the better."