Tuesday, September 18, 2012

“Dollar Index Headed for Rapid Collapse” Over Next 3 to 4 Weeks

If you think the Federal Reserve’s quantitative easing will only affect the US dollar, think again. Now that the United States has officially begun it’s third round of money printing to the tune of at least $40 billion monthly, central banks around the world will also act to ‘defend’ their currencies in kind.

Moreover, because everyone is joining the fray, all of that extra money will make its way into key resource stocks and commodities, adding further upside price pressure to essential goods like food and fuel.

It’s a race to the bottom, and the losers are the 99.9% of us who aren’t being kept in the loop.

Quantitative easing is really another word for currency wars. A weak U.S. currency puts continued pressure on the Japanese Yen, the Chinese Yuan, the South Korean Won, the Australian dollar and other currencies.

Cheap money also fuels speculation and this money quickly drifts into commodity markets and the ETFs that help propel commodity market speculation. This is inflationary for food prices.

The lower the U.S. dollar the greater the intensity of currency wars. The break below the key uptrend line on the Dollar Index chart was an early warning of the third round of quantitative easing (QE3). Read more....

1 comment:

  1. Jimmy Choo Purse, the Malaysian descent famous shoe designer, Empire Medal winner, was the late British Princess Diana, Queen shoemaker. Its design always walk noble style, shoes can produce is both inside and outside, while type, put on foot also very comfortable. Jimmy Choo handbag has been an integral part of a single product on the dinner bag series of Jimmy Choo 2012 autumn and winter new publication, exhibition luxury Jimmy choo bag, as always. http://www.jimmychoobagssales.com/

    ReplyDelete

Everyone is encouraged to participate with civilized comments.