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The Central Banks Will Not Be Able to Control This

Phoenix Capital Research's picture




 

The biggest issue facing the finacial system today is the US Dollar rally.

 

The Fed and other Central Banks are trying to maintain the illusion that they have everything in control by talking about interest rates, but the reality is that the US Dollar carry trade is ABOVE $9 trillion in size. That is almost as big as ALL of the money printing that occurred between 2009 and 2013.

 

And it's imploding as we write this.

 

Globally, the world is awash in borrowed money… most of it in US Dollars. The US Dollar carry trade is north of $9 trillion… literally than the economies of Germany and Japan COMBINED.

 

When you BORROW in US Dollars you are effectively SHORTING the US Dollar. So when the US Dollar rallies… you have to cover your SHORT or you blow up.

 

And the US Dollar has been rallying… HARD. Indeed, the move that began in July 2014 is already larger par in scope with that which occurred during the 2008 meltdown.

 

 

 

Moreover, this move has occurred with little to no rest. The US Dollar barely corrected 2% after rallying a stunning 16+% in a matter of months before beginning its next leg up.

 

 

You only get these sorts of moves when the stuff hits the fan. CNBC and the others are babbling about the Fed’s FOMC changes, but all of that is just a distraction from the fact that a $9+ trillion carry trade, arguably the largest carry trade in history, has begun to blow up.

 

Rate hikes, QE, all of this stuff is minor in comparison to the carnage the US Dollar is having on the financial system. Take a look at the impact it’s having on emerging market currencies.

 

Here are the monthly charts for the USD/ Aussie (black line), USD/ Brazilian Real (blue line), USD/South African Rand (red line), and USD/ Mexican Peso (green line) pairs. The carnage over the last six months has been extreme with double digit moves across the board.

 

 

The US Dollar took down Oil, commodities, even emerging market currencies. Stocks will be next. The first REAL sign that the 2008 Crash was coming occurred when the US Dollar began to skyrocket in the summer of 2008.

 

The time to prepare is now, BEFORE the crash hits.

 

If you’ve yet to take action to prepare for the second round of the financial crisis, we offer a FREE investment report Financial Crisis "Round Two" Survival Guide that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.

 

You can pick up a FREE copy at:

 

http://www.phoenixcapitalmarketing.com/roundtwo.html

 

 

Best Regards

 

Phoenix Capital Research

 

 

 

 

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Fri, 03/20/2015 - 10:24 | 5909612 JailBanksters
JailBanksters's picture

They wanted more more money, they got more money.

They wanted more debt, they got more debt.

 

Fri, 03/20/2015 - 09:37 | 5909449 JRobby
JRobby's picture

"Globally, the world is awash in borrowed moneymost of it in US Dollars"

That says it all. Inflating debt. Gives new meaning to "baloon payment"

Dutch Boy Yellen has no chance. No matter how many thumbs she has.


Fri, 03/20/2015 - 08:35 | 5909252 LawsofPhysics
LawsofPhysics's picture

Another great contrarian indicator....

Thu, 03/19/2015 - 21:04 | 5908347 Some Bloke
Some Bloke's picture

"Hey ZHers, watch me pull a bear market out of this hat!"

"Againnnnnnnn?  That trick never works!"

"This time for sure!!!!"  

[Whoops, Phoenix pulls out another 1000 point rally.] 

Fri, 03/20/2015 - 01:24 | 5908908 pakled
pakled's picture

+1 for the Rocky & Bullwinkle reference.

Thu, 03/19/2015 - 19:53 | 5908107 orangegeek
orangegeek's picture

Where are the earnings confessionals for Q1?  What?  No adjustments going into quarter end?  In the face of a rocketing dollar.  MOAR FRAWDD

Fri, 03/20/2015 - 08:32 | 5909244 GuusjA
GuusjA's picture

Zolang de mensheid nog steeds toestaat dat netwerk WitteGejT de 'echte economie' mag uitmelken met behulp van het SCHULD=H00P-principe, zal de haat van netwerk @SuperWil tegen het psychosegeloof (denkpatronen die niet in lijn zijn met de 'Logica van de 1') alleen maar groter worden.

 

http://www.trouw.nl/tr/nl/4504/Economie/article/detail/3917522/2015/03/2...

 

De MACHT staat erbij en kijkt ernaar: "Als minister kan hij natuurlijk niet veel meer dan vrijblijvend zijn bezorgdheid uitspreken. Als enige aandeelhouder kan hij hier op de aandeelhoudersvergadering wel degelijk nog een stokje voor steken. Maar uit de laatste informatie blijkt dat het met hem overlegd is, en dat hij het niet heeft tegengehouden. Ik ben benieuwd wat de Kamer daarvan vindt."

 

http://www.volkskrant.nl/buitenland/griekenland-belooft-pijnlijke-hervor...

 

De Griekse premier Tsipras is inmiddels op de hoogte dat Merkel, Hollande en de andere tafelgenoten nog steeds niet willen inzetten op een snelle invoering van het systeem 'Leven en Laten Leven'. In een korte verklaring staat dat Griekenland snel moet handelen, maar dit signaal is voor netwerk @SuperWil het teken voor ...

 

http://www.ftm.nl/column/jeroen-dijsselbloems-europese-gemeenschap-illus...

 

Thu, 03/19/2015 - 20:02 | 5908133 WhackoWarner
WhackoWarner's picture

I think you did not need to wirte anything past the title.

 

So shill with titles only.  Rest is old news.

Thu, 03/19/2015 - 19:51 | 5908101 Professorlocknload
Professorlocknload's picture

But,,,I thought the biggest threat was derivatives? Or was it Subprime used car loans, can't remember now?

Thu, 03/19/2015 - 19:30 | 5908022 Majic
Majic's picture

UmmVerr!  We're all gonna die! ( Well of course we are, someday)...Stay out of debt and keep a good deal of your resources in hard assets and you'll get through.

Thu, 03/19/2015 - 21:36 | 5908483 Bossman1967
Bossman1967's picture

Not die lose moar of your fiat on paper gold just buy the physical bury it and go on and enjoy what life we have left when this shit does go down next year wow

Thu, 03/19/2015 - 17:18 | 5907588 TruthInSunshine
TruthInSunshine's picture

Every time a Phoenix Capital "article" appears the stock "market" rallies hard.

Fri, 03/20/2015 - 01:27 | 5908911 pakled
pakled's picture

Still, a "short squeeze" on the USD tends to explain the meteoric rise perhaps better than any other theory.

 

just sayin'

Thu, 03/19/2015 - 22:32 | 5908654 Meremortal
Meremortal's picture

The dollar rally is also about over, for all the reasons cited above.

So, never mind.

Markets, how do they work?

Fri, 03/20/2015 - 09:53 | 5909512 SaintInix
SaintInix's picture

Work? They don't.

The Markets are broken, and have been for ages.

 

That's why I'm long swords and water purification tablets.

 

Just gonna wait for everyone to use up their ammo.

 

Swords don't need to be reloaded.

 

Fri, 03/20/2015 - 11:41 | 5909910 Dragon HAwk
Dragon HAwk's picture

I see your Sword and raise you One Pike.

Fri, 03/20/2015 - 16:30 | 5911129 SaintInix
SaintInix's picture

I see your pike and raise you one compound bow.

Thu, 03/19/2015 - 20:06 | 5908146 Comet1962
Comet1962's picture

<p>yes, it is true, so i do not usually pay much attention to Phoniex Capital "article", but this time maybe different....</p><p>this is awesome!!!</p><p>&nbsp;</p><p>&nbsp;</p>

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