Posted on 11/01/2014 9:28:33 AM PDT by blam
Julia La Roche
October 31, 2014
The Federal Reserve ended quantitative easing this week. And soon it'll start tightening monetary policy with interest rate hikes.
This is coming as central banks in the rest of the world maintain loose monetary policy or even go as far as to loosen monetary policy further.
All of this is bullish for the US dollar relative to other major currencies.
Business Insider recently asked the smartest people in finance for what they considered to be the "most important charts in the world."
Without hesitation, former global macro fund manager Raoul Pal sent us a long-term chart of the US dollar index.
"The chart of the US dollar is by far and away the most important chart on earth," said Pal who is author of The Global Macro Investor and founder of Real Vision Television. "If we break the trend line we will be entering potentially one of the biggest dollar bull markets in decades, if not ever. This would be the biggest technical break in the history of fiat currencies."
(snip)
(Excerpt) Read more at businessinsider.com ...
I swear that sometimes I feel I’m participating in a real-life version of ‘Trading Places’.
in charge-ball when the crash hits.
I, however, think that it's a simple case of Heads I win, tails you lose.
and that both parties
are in reality a single entity.
Great job on the dollar art!
Grew up their, was back for a week last week. I got to hear the resistance to this on the radio. And Mass has what energy Sources? And the 1500MW unit that is closing in ( Chatham? ) is going to be replaced with? Seriously we can't fix stupid, where are G-ds name are the citizen's in the State of MA going to get their are compromises to be made and you have to pick and Energy Source because their is no Magical Unicorn Farts to keep them lit and warm. And don't even get me started with the wood-refuse plant they want to build in Ludlow (if my memory is correct) and they are up in arms about that too!
The citizenry continues to luxuriate at the dangerous intersection of no critical thinking, Utopian Statism, and lack of common sense that will make them fall further in the arms of the apparatchiks on Beacon Hill as they surrender more Liberty cloaked in the illusion of fairness and what is good for the environment.
The dems are in a tough place. Between Obama doing NOTHING to promote future Democratic leaders and hillary not announcing if she's running (thus cutting off potential competition), they're really kind of stuck with no good way to develop a voice.
Oh well.
The dollar has been weakening for a LONG time...
I think that worm has turned... the Dollar is going to strengthen, a LOT, in the next several years...
That means: cheaper Oil and fewer manufacturing jobs.
The affect on jobs will be off-set by our low energy cost (relative to the world).
This may all be part of a global plan to PUNISH Russia. For sure, it’s putting a lot of pressure on them.
and fewer manufacturing jobs
.............
disagree on this.
There are two other manufacturing revolutions in the wings. The first is 3d printing and the second is advanced robotics.
Together these two will obsolete the outsourcing model.
On top of that corporate distaste for outsourcing is growing. More than 50% of big US corporations in China are at some stage of planning for reshoring. http://www.bcg.com/media/pressreleasedetails.aspx?id=tcm:12-144944
2013 was the first year in decades where there was not net outflow of jobs.
http://electroiq.com/blog/2014/05/domestic-outsourcing-a-key-component-in-successful-reshoring/
http://info.saintclairsystems.com/blog/bid/382814/Who-s-Ready-for-Reshoring
Well, I thought it started with the first Bush Bailout thinking the Rs were doing the same thing hoping the major crash would come during the Dem reign of terror.
The thing is, don’t the marxists heading the executive branch need a collapse for the marxist revolution?
Maybe we have it all wrong. Maybe the muslims are using the marxists as a cover. Tin foil hat is spinning. Had a pack of sweet tarts and have a low blood sugar headache.
In general, a cheaper dollar makes manufacturing cheaper here.. which, means MORE jobs.
as I mentioned in my first note, it might not happen now.. since, we have such CHEAP energy. I think, this factor is strong enough to overcome a strong dollar.
You raise two additional factors... both of which, I agree.. will help maintain jobs here.
This just makes me even more certain that, we’re in for an extended period of dollar appreciation.
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