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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?


To: Real Man who wrote (54609)2/8/2014 6:41:21 PM
From: ggersh  Read Replies (2) | Respond to of 71479
 
More megaphone...SPOO could go to 400 considereing
any normal fundamentals, but the we have saviors of the
world, is this time different? -vbg-



To: Real Man who wrote (54609)2/8/2014 6:53:58 PM
From: ggersh  Read Replies (1) | Respond to of 71479
 
Right here, he agrees, tapering the appetizer, but as far as this goes,
we've said it from the very start of QE...-nfg-

Message 29377775

Currently, $20 billion has been cut from the $85 billion per month program, and we are already beginning to see what appear to be market effects, including a flight from emerging market currencies from Argentina to Turkey. A couple of years ago investors viewed these markets as among the few places they could make a positive return, or in other words, one of the few places they could successfully gamble. The Fed taper, though, seems to be shifting the flow of capital away from emerging markets.

The mainstream argument is that stimulus was flowing into emerging markets, giving them liquidity support, and the taper is drying up that liquidity. Whether this is actually true is hard to say, given that without a full audit we have no idea how much fiat the Federal Reserve has actually created and how much of it they send out into foreign markets.

I stand more on the position that the Fed taper was begun in preparation for a slowdown in global markets. In fact, I believe central bankers have been well aware that a decline in every sector was coming, and are moving to insulate themselves.