- A Wealthy Governor and His Friends Are Remaking Illinois
- GOP In Panic Over Trump
- How Russians See the West and Russia
- E.U. Offers Turkey 3 Billion Euros to Stem Migrant Flow
- The Rise of Anti-Black Friday Branding
- The Science Of Gratitude
- The idea behind cycling for free electricity
- Secret Reserves
In this week's Off The Cuff podcast, Chris and Nomi Prins discuss:
- Rumor-Driven Markets
- All that matters now is what folks think the central banks will do
- The Fed Is Scared
- Out of ideas and increasingly out of options
- The Trump Card
- The weakening economy will eventually trump delusional markets
- Anxiety Builds
- Lots of signs that those in the game want to get out
Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.
- House passes bill to overhaul the Fed
- Vladimir Putin refuses to speak to Turkish president over Ankara's lack of apology
- Disease victims often shut out of workers' comp system
- Europe: Here We Go Again
- Auto-dealing congressman draws complaint
- China ‘cloning factory’ to produce cattle, racehorses and pets
- DEA Agent Speaks Out: We Were Told Not to Enforce Drug Laws In Rich Communities
- Glenn Greenwald: Why the CIA is smearing Edward Snowden after the Paris attacks
- How Long Can Florida's Citrus Industry Survive?
- Getting My Money’s Worth
- The Human Error Behind the Kunduz Hospital Strike
- Maps from Russia and Turkey tell very different stories about the downed jet
- Turkish president warns Russia not to 'play with fire' after Putin suggested Su-24 jet was shot down after America passed on details of its flight path
- Meet The Man Who Funds ISIS: Bilal Erdogan, The Son Of Turkey's President
- Does It Pay To Be Kind To Strangers?
- Why No One Will Implement the Best Solution to Economic Stagnation
- A Most Convenient Massacre
- Tomgram: Rebecca Gordon, Corruption U.S.A.
- U.S. Failing To Harness Hydro Power Potential
- Why do American cops kill so many compared to European cops?
- How Chicago tried to cover up a police execution
- NATO Is Harboring ISIS, And Here's The Evidence
- Reputation In An Information Age
- Rick Rule: Absolutely Manic Bull Market In Gold Coming Soon
- Company with Obama ties presses to stage events at parks
- How Walmart Keeps an Eye on Its Massive Workforce
- Kohls Worker Details Her Insane Schedule Through Black Friday
- Let's talk, Turkey: Downing of Russian SU-24 bomber just doesn't add up
- Saudi Arabia’s Wells Are Running Dry
- Will Low Oil Prices Increase Internal Instability In Conflict Countries?
- Whale Fall
Our first observation is that trends in the USD tend to last for some time, so if this rally follows the pattern of previous rallies, it’s unlikely to have run its course in one year.
Secondly, previous rallies paused for a multi-month consolidation period before launching upward for the second leg of the long-term rally.
Thirdly, the USD rose sharply to previous peaks and then round-tripped back to the 80 level.
This raises the question: How high could the dollar rise in this rally?
- Other currencies are inflating faster than the USD
- The USD is still backed by a preponderance of the world's assets
- The potential for a global currency crisis is rising
- Why USD will be the (initial) safe haven when it arrives
In Part 1, we reviewed the technical evidence in support of a second move higher in a multi-year U.S. dollar rally. Here in Part 2, we ask: What conditions might drive such a move higher?
To answer this question, let’s start with another question: What’s scarce in the world of foreign exchange (FX)?
We ask this because capital, profits and gains flow to what’s scarce and in demand. This boils down to supply and demand: gains go to whatever is in high demand and scarce, and whatever is not in demand and over-supplied will lose value.Supply and Demand
Like every other commodity, currencies respond to supply and demand: whatever currency is scarce and in demand will rise, while currencies that are in oversupply and not in demand will decline.
Though many presume the world is awash in dollars as a result of Federal Reserve quantitative easing, the reality is that expansion of USD via bank loans (credit) and Fed money-creation is modest compared to the expansion of other global currencies such as China’s renminbi (RMB), a.k.a. yuan.
Consider this chart of bank credit expansion in the U.S. and in China since the onset of the “Great Recovery” in early 2009: China’s bank credit has soared by 260%, a sum that is roughly 140% of China’s entire Gross Domestic Product (GDP), while U.S. bank credit rose by a modest 12% of U.S. GDP.
If we compare M2 money supply, we find...
- Puerto Rico Bond Payment Overshadows Debt Exchange Optimism
- Singapore oil borrowers seeking more slack to avoid bond defaults
- Global debt defaults near milestone
- TVA racks up $6 billion shortfall in its employee pension fund
- Quarter of adults struggling to cover healthcare costs, high deductibles, Commonwealth Fund says
- Gov. Tom Wolf: Deal to end budget stalemate 'in deep peril'
- U.S. GDP growth raised for third quarter
- Chinese fertiliser firm says may not be able to make bond payment
- Chicago pension ruling seen a loss as retirement costs climb
- S&P revises outlook on Mass. debt to ‘negative’
- Japan’s government urged to cut doctor fees, drug costs
- California launches DebtWatch open data site
- Household debt rises at fastest rate on record
- National debt spikes $578 billion in three weeks
- ‘Bad Bank’ Sees More Chinese Debt Souring as Economy Slows
- Deflation, then versus now: Is Singapore in crisis as consumer prices fall?
- CalSTRS, CalPERS okay risk reduction
- Australian economic forecasts cut as Treasury predicts slower growth for longer
- Stung by Oil, Distressed-Debt Traders See Worst Losses Since '08
- Number of people served by food bank rising
- Russia says recession over but economic pain goes on
- More Young Adults Live With Their Parents Now Than During the Recession
- Japan to raise minimum wage by three percent to boost consumption
- Four nations risk breaking EU budget rules in 2016: euro zone finmins warn
- Turkey prices hit record highs — but you should still be thankful
Learn about how to use your surroundings and nature's signs to guide your way and rely less on electronic tools.
This morning two Turkish F-16 fighters shot down a Russian jet, claiming that it was in Turkey’s airspace after it had ignored repeated warnings.
There are two problems with this story. The first is that Russia claims to have evidence that the Russian jet never left Syrian airspace. The second is that even if the Russian jet had strayed into Turkish airspace, Turkey knew there was zero threat to its security from a single Russian jet. Everybody and their uncle knows what Russian jets are doing in the area.
This means that NATO, of which Turkey is a member, had given a greenlight to the idea of shooting down Russian planes.
GCUC 2015's unconference schedule. Events are a great way to market a coworking space. Photo by author.
- Canada Pension Plan Investment Board consortium agrees to US$4.6-billion deal to acquire PetCo
- Now the truth emerges: how the U.S. fuelled the rise of Isis in Syria and Iraq
- Home Of The Not-So-Brave
- Putin: Downing of Russian jet over Syria stab in the back by terrorist accomplices
- There's Hope For Argentina
- The chilling aftershock of a brush with death
- Why I Chose A Gun
- Gold Price About To Bounce. Watch 1250 USD For A Trend Reversal
- Tangled Threads Of U.S. False Narratives
- Alberta Takes Drastic Measures To Reduce Carbon Emissions
- Pollution from Brazil dam burst enters the sea, killing marine life
In today’s complex economy how do we progress financially from where we are today and the life of abundance we seek? This is the first question a financial advisor will ask us. It is seldom an easy question to answer because the quality of our life isn’t measured purely in financial terms. There are multiple factors including our work, our family and, fundamentally, our values. How does our quest for financial wealth balance with the people and planet upon whom we depend? Surprisingly, it all begins with soil.
- When Wall Street Gets DeFANGed: Look Out Below!
- Putin Tells Everyone Exactly Who Created ISIS
- Obama Orders Inquiry Into Intelligence on ISIS
- Magical Thinking About ISIS
- Americans are buying tons of gold
- PBS NewsHour Uses Russian Airstrike Footage While Claiming U.S. Airstrike Successes
- Why SEIU Backed Hillary
- To Save African Penguins, Humans Run a Dating Service