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Dollar Index Tops 100 As EURUSD Tumbles To 1.05 Handle, 7-Month Lows
EURUSD just broke to a 1.05 handle, its lowest since April. With EURUSD now down 9 big figures from Draghi's mid-October jawboning, the US Dollar index (heavily-weighted to EUR) is soaring, reaching back above to its highest since March. Bearing in mind that Fed's Fischer says that the worst of USD's impact on the US economy is yet to come, we may have a problem.
EURUSD tumblefest continues...
Sending The USD to US Corporate earnings-crushing 8-month highs...
Charts: Bloomberg
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Everything going to equilibrium...
Now regarding all that entropy...
race to the bottom motherfuckers!!!
USD 120 - here we come
http://www.goldsqueeze.com/home/usd-cracks-100-again-the-most-bullish-ch...
Jim Willie has been right about the dollar so far - going into the stratosphere. The kicker is he says it will go poof. He hasn't given a reason for that occuring, but he doesn't need to.
It will probably be when everyone starts dumping USTs.
Sometimes I think Jim Willie is a loony, and sometimes I think he's a shill. I haven't yet seen him to be completely wrong, though. Except in matters of timing. But frankly, I don't believe anyone's timing calls, including my own.
I don't remember Jim Willie giving time frames...when asked when it will happen he always says September 52..... :-). He basically just talks about what is happening economically across the globe
You're right, he isn't some sort of Millerite or Y2K'er, giving specific dates. That is the main criticism of him that I see, however. I find Jim Willie very interesting in the order in which he sees things happening, the cause-and-effect chain. I don't expect anyone to get dates right, and if they suggest them, I tend to distrust that all the more.
His grasp of the interconnectedness of political, military and economic matters toward economic agendas is what really sets him apart. He can actually conceive of a possible system different from our current system. I find most commentators cannot do that. Their "Doom Porn" stops at "Our current system isn't going to work properly!!!!1!" Which is probably true, but isn't even the half of it and isn't helpful knowledge in and of itself; we should already know that if we go outdoors, have transactions with others, and memories lasting more than a year or two.
Uncle Jim has simply recognizes and respects the fact that the global economic universe does not revolve around the United States, despite a rising $DX. He also recognizes that geopolitics and U.S. foreign policy play a significant role in the overall scheme of things. Finanical mouthpieces here domestically give no significance or attention to the geopolitical dynamic that is in play, but they will in due course.
I read an interesting narrative on a pay site that was sent to me by a buddy. The author basically boiled this phenomena down to the unwinding of the dollar trade. His thesis was that countries, investors, hedge funds borrowed hugh sums of money when the FED went to 0% and reinvested those funds into foreign bonds, businesses, etc. However, the FX exchange has destabilized and now with the USD getting stronger due to several factors, one being Emerging markets weakening, it is causing a self fulfilling feedback loop where the loans are more expensive to pay back and these investors are buying the dollar to pay off their previous loans.
His charts indicate a top of 130 but it seems to me that the FED can manipulate the FX markets so I'm not sure if we would actually see the USD hit that mark.
However, it seems to me that when this buying of the USD tops out, that would be when we would start seeing some sort of dislocation start happening. Also, at some point foreign trade as well as EM issues would crop up if the dollar keeps trading higher and higher.
Too many moving parts for me to figure out but thought I'd share this guys thoughts on it since it sort of made sense to me.
More than entropy. US Dollar Demise & WW3 >> http://bit.ly/1PyMpdw
perhaps, but quite frankly, the oligarchs are global now. There is no shortage of sociopaths in any country, including China.
This can't be happening. I was told just last week not to believe the anti-euro propaganda and the dollar was on the brink of collapse!
Seems like the apocalypse has been delayed... again.
I have a feeling this strong dollar spiral is getting more extreme than TPTB expected it too, anyone else? Feels like they will need to slow this down soon, but what do i know.
If the Euro keep dropping, we'll be able to buy cheap German shit instead of cheap Chinese shit.......
I like the way you think!
Free Honda if you fill up with premium
Oooh, like printer ink....
Somehow I'll bet that 100 today isn't what 100 was,,, say back in 1980.
I've watched that number go from 83 to 100 while prices are still going up except for oil which price reductions are for entirely different reasons.
You're correct. The USDX is heavily weighted to Euros. Which, of course, didn't exist in 1980. Some would say the Euro is a proxy for the old Deutsche Mark, but I don't think that's really very accurate.
Bullish, even though economics 101 has a dropping currency "increasing exports". SO this isn't bullish, but it is.
New normal.
God I love this. Waiting for .50 cent Euro.
Well, it appears orly finally got her "strong dollar" call correct. I doubt she thought it would take several years to happen. As far as the Euro goes, it's hard to see any reason to find any strength in that part of the world now.
FUBAR.
Yay!
Looks like the start of an impulsive 5 five advance. Oil is going to get cooked, then bonds as the USD goes North.
Is this conformation of a rate rise?????