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

To: Pogeu Mahone who wrote (56879)	1/28/2015 9:37:48 PM
From: elmatador	Respond to of 71456

The FED met and not a single member had a look at it and analysed its impact Not even our PhD here... Still waiting for your Linkedin profile to see in which field you are a PhD... I have posted that as USD has been syphoned in. USD strong the FED would just play the incautious. yeah, I am the one who is wrong everybody else is right. FED will be "patient" in raising rates from record lows but noted that inflation remains well below its target rate. Says increasing interest rates depends on inflation NOT ON UNEMPLOYMENT RATE ANYMORE! Interest rates depend on inflation but inflation will decline further before starting to rise gradually. Fed stays "patient" but voices new low inflation concerns WASHINGTON - The Federal Reserve reiterated Wednesday that it will be "patient" in raising rates from record lows but noted that inflation remains well below its target rate. In a statement after its latest policy meeting, the Fed made clear that no rate increase is imminent. Chair Janet Yellen said after last month's meeting that by saying it would be "patient," the Fed was signaling there would be no rate increase for at least two meetings. The Fed's statement Wednesday said the factors holding inflation below its 2 percent target rate have intensified since its last meeting in December. Inflation has stayed ultra-low partly because of a plunge in energy prices and a steadily strengthening dollar. The central bank said it thinks inflation will decline further before starting to rise gradually. The Fed statement's emphasis on low inflation could affect when it decides to raise its key short-term rate from near zero. Many economists have forecast a Fed rate hike in June but some have pushed back that timetable. The U.S. economy's steady growth and a strengthening job market would normally argue for a move to begin raising rates to prevent high inflation. The Fed has kept its benchmark rate near zero since December 2008 to encourage borrowing, spending and investment and support the economy's recovery from the Great Recession. The Fed's key rate affects rates on many consumer and business loans. But concerns about global economic weakness and low inflation have raised doubts about when the Fed's first rate increase will occur. A growing number of economists say the date could slip to September or even later. Economists at Morgan Stanley this week pushed back their forecast for the first rake hike to March 2016 because of the factors holding inflation down. If the Fed wants to signal that a rate hike is coming in June, it would need to alter the "patient" wording at its next meeting in mid-March A complicating factor is the European Central Bank's new plan to flood its sputtering economy with more than 1 trillion euros. That money should keep the eurozone's interest rates ultra-low and could lead some investors to buy higher-yielding U.S. Treasurys. That would further strengthen the dollar and could push U.S. inflation further below the Fed's 2 percent target. Growth in China, the world's second largest economy, is slowing, too. By contrast, the U.S. economy added nearly 3 million jobs added last year, enough to cut the unemployment rate to 5.6 percent. That is just above the Fed's goal of 5.2 percent to 5.5 percent unemployment. But Yellen and other Fed officials have pointed to other factors - such as weak pay growth and a still-high number of part-time workers who can't find full-time jobs - as evidence that more must be done to achieve a healthy job market. U.S. prices rose just 1.2 percent in the 12 months that ended in November, according to the Fed's preferred gauge of inflation. When inflation is too low, consumer spending - and economic growth - can slow as people delay purchases on the assumption that the same or lower prices will be available later. The biggest fear is deflation - a broad decline in prices and income that can further restrain spending and even tip an economy into recession. © 2015 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

To: Pogeu Mahone who wrote (56879)	1/28/2015 9:56:14 PM
From: elmatador	Read Replies (1) \| Respond to of 71456

sorry. Siphoned. Misspelled the word Siphoned. Original posting is here Message 29913521 We need to see how the market will buy the FED's wordplay. The market may soon discover that perhaps this interest rates increase will not materialize and get out again... Dollar will go down

To: Pogeu Mahone who wrote (56879)	1/28/2015 10:10:31 PM
From: sense	Read Replies (1) \| Respond to of 71456

I agree with you about the "Bankers Gone Wild" aspect of the global difficulties... The problem for those interested in enabling a rational policy that isn't based in fraud... is one of parsing the boundaries between what rational (honest) bankers would do, and what gamblers would do... and what the mob would do... while also recognizing that many of the alternatives on offer are no better and no less corrupt. The most vociferous opponents of the western banks corruptions, are those who operate competing and even more corrupt systems, which doesn't make them better alternatives. The elements of wrongdoing in each instance of excess are too easily swept under the rug with the explanation that it was "an isolated incident" of an excess that was local... Nothing could be less true. The 2008 mortgage bubble and meltdown was caused by banks enabling and directing mortgage fraud, and by banks knowingly participating in fraud in creating fraudulent derivatives, and trading fraudulently in their derivatives trading. The fraud in trading bonds, the most recent exposed... is just another in a very long and growing line. Every market there is has been corrupted by the fraud emanating from the top down in banking. The global banking cartel is as corrupt as any cartel... The problem the global economy has... is that not participating in any trade with the criminals is the most rational approach to limiting exposure to the risks they create... The absence of a free market in banking... is the problem. The solution to the problem... is to restore the free market function in banking. The free market function begins with the basic requirements of a free market... government that punishes fraud with an effort meaningful enough to prevent it... and government that enforces an absence of monopoly control over market access. The deflection... is to focus observers on details of monetary policy... as if monetary policy were capable of making up for the problems that are caused by the intentional STRUCTURING of problems... which problems are created specifically because the problems, as intended, unfairly benefit some at others expense... QE is part and parcel of the problem... in which that aspect of monetary policy is corrupted, like everything else has been already, to enable direct transfers of wealth, through direct transfers in ownership of debt, and transfers of ownership of risk... shifting risks and ownership of obligations from the banks to the taxpayers... which benefits the banks, and only the banks... not the economy or the banks customers.