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Neno's Place Established in 2006 as a Community of Reality


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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


3 posters

    Strong Equities: Stronger US Dollar. Why?

    wciappetta
    wciappetta
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    Strong Equities: Stronger US Dollar. Why? Empty Strong Equities: Stronger US Dollar. Why?

    Post by wciappetta Fri 10 May 2013, 12:49 pm

    Strong Equities: Stronger US Dollar. Why?

    May 10
    | 2013





    Since
    September 13, 2012, we have watched the Federal Reserve Bank inflate
    the money supply @ $85 billion each month, in an effort to drive money
    out of banks and out from under mattresses, into the equity markets. The
    plan has worked. A second, important purpose of that plan has been to
    make American goods and services cheaper on the world markets. However,
    that dollar weakness has not materialized; in fact, the US dollar has
    recovered half its lost strength from the decline that began in 2002.



    Within the past week, the European Central Bank has slashed its cash
    rate from 0.75% to 0.50%; the Reserve Bank of Australia has cut its base
    interest rate from 2.75% to 2.5%; the Bank of Korea cut its rates and
    is threatening to intervene due to capital flows into that nation; the
    Reserve Bank of New Zealand has intervened to arrest appreciation;
    Sweden is threatening to intervene to weaken its Krona, and the British
    pound is in the trash. The Bank of Japan, of course, has been weakening
    its yen since Abe’s election last fall. Meanwhile, the Federal Reserve
    is looking for an exit strategy for its own stimulus; therefore, to the
    extent that $85 billion/month has been acting as a damper, that
    influence is growing long in the tooth. This has been a big driver for
    USD strength over the past months. In direct consequence, we have now
    seen the USD index recover half its lost strength since 2002, at the
    same time that the equity markets have climbed to new record levels.

    Meanwhile, nobody’s making money: Yields are down; more and more
    money is being put at risk for lower and lower yields and the only way
    to make money is by riding this very risky, top heavy appreciation curve
    we see in the stock markets.

    I don’t like this environment. Do you?
    If the Federal Reserve were to stop its artificial stimulation of the
    American equity markets, what reason would there be to remain in risky
    stocks, with yields already so low? The rationale to be in stocks would
    evaporate, the stock markets would crash and money would go flying back
    into the US dollar and the yen so fast it would make your head swim. The
    threat of that eventuality is a strong inducement to continued loose
    monetary policy. On the other hand, it is causing a worldwide currency
    war in which central banks around the world are engaging in efforts to
    weaken their respective currencies in relative terms, just to keep pace
    with the Fed; beefing up stock prices; nobody is making money, and stock
    prices march upwards.

    Watch consumer spending.
    In the event the Fed backs off of its mad stimulus efforts, equity
    prices will fall suddenly, and the US dollar will continue to
    strengthen. The EUR/USD would fall; European and British stocks would
    become attractive in US dollar terms, and oil would…probably fall.

    I think the best investments right now are things you can hold in
    your hand. This is a great time to spend money on long terms supplies;
    elective surgeries that enrich your life and preserve your health,
    munitions, water; and to put sizeable portion of your money into
    physical cash. Physical cash can’t be frozen in your account because of
    your country’s debt woes, as happened so recently in Cyprus.Furthermore,
    in the event of a liquidity shock, cash purchasing power will explode.

    http://www.doityourselfcapitalism.com/strong-equities-stronger-us-dollar-why


    _________________
    In the beginning was the Word, and the Word was with God, and the Word was God.... For from His fullness, we have all received and grace upon grace. For the Law was given through Moses; grace and truth came through Jesus Christ. No one has ever yet seen God. The only begotten God, the One being in the bosom of the Father, He has made Him known. - Berean Literal Bible
    weslin3
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    Strong Equities: Stronger US Dollar. Why? Empty Re: Strong Equities: Stronger US Dollar. Why?

    Post by weslin3 Fri 10 May 2013, 6:31 pm

    Something is going on with the dollar up to 83.
    ron-man
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    Strong Equities: Stronger US Dollar. Why? Empty Re: Strong Equities: Stronger US Dollar. Why?

    Post by ron-man Fri 10 May 2013, 6:56 pm

    I'm in question,what is going on.
    weslin3
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    Post by weslin3 Sat 11 May 2013, 7:29 pm

    Just getting stronger. Hasn't been up that high in a long time.
    ron-man
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    Post by ron-man Sun 12 May 2013, 1:20 pm

    Thanks

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