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Strategies & Market Trends : John Pitera's Market Laboratory
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To: The Ox who wrote (16846)3/19/2015 11:29:18 AM
From: isopatch3 Recommendations

Recommended By
Davy Crockett
Fintas
sixty2nds

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Think that scenario is very unlikely. Higher rates would only increase the already growing deflationary pressures we've seen slowing economies across the globe, especially in the 2nd half of 2014. The powerful bull run in the dollar, very weak BDI index, plunging commodity prices extending far beyond the energy and metals markets all indicate significant deflationary pressures.

It's not my opinion that higher interest rates strengthen a currency and slow economic growth. It's one of the axioms of economics and finance that we've seen proven over and over throughout our lifetimes AWA for centuries before that. So...

If the FED were to steadily raise rates? The dollar would move even higher and global economy would contract more rapidly.

One of the ways, we might get a brief uptick in rates would be for other factors to enter the picture and bring about a large %age dollar decline. It would create a window for at least a, small, brief, face saving rate hike that the FED would love to do to maintain some credibility, after all this talk.

JMHO, Mr Market will show us what unfolds in the fullness of time.

Have to log off for awhile. Chain saw AWA other outdoor garden and orchard work to do on the back acreage.

Leave the light on for me.

Iso
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