Thursday, January 15, 2015


Emerging markets stocks and countries have been facing a headwind with the strong dollar and the prospect of an interest raise out of the U.S. Fed.

Now Europe looks set to take over the money printing: Draghi swagger

It is early in the day, but this is what I see in the charts. Emerging markets look strong. Perhaps some firming in oil, and the metals on the prospect of more easy money to come.

Looking at EEM for a change....


And do you remember that vote on gold by the Swiss a few weeks ago, that did not pass. Well perhaps it would pass now.

Not that gold is cost more in Swiss francs, but just to have the safety as the currency wars heats up.

Swiss Central bank shocks

Gold anyone?

Furthermore, the Fed must see now that it would be disastrous to U.S. exporters to proceed with raising interest rates as planned. If we still have a trade deficit, we are not getting wealthier, nor working. Currency war?
Well, it may not be a war with malicious intent. It seems to me it is about the same as the housing bubble and the sale of CDO's. Everybody was doing it, so most banks did it rather than be left behind. Same with worldwide interest rate manipulation. Everybody has to do it, rather than be left behind. That is why it is referred to in polite circles as "competitive devaluation".
The only currency that will be left standing is that solid metal. Gold, copper, silver, palladium. You get the picture.

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