Socio-Economics History Blog

Socio-Economics & History Commentary

U.S. Dollar at Risk of Unraveling

  • The USDX (US Dollar Index) is about to test 78 and move to 72 rapidly. By August we will see it. The question is when it will break the 72 level and head to 52 (ie a approx 30% devaluation). My feeling is the accursed month of October again! Guy Lerner advises :
      
    I discussed the significance of this pattern in the June 19 article, “Very Dangerous Time For Dollar Index”. Essentially, this is a very ominous price pattern that portends a high likelihood of a major down draft for the Dollar Index. A weekly close below the third pivot point at 79.46 would make this pattern valid.
     
    If the Dollar Index were to be set on a downward spiral, I think the biggest beneficiaries would be long term Treasury yields and gold. I have been “pounding the table” for higher Treasury yields for months, and this might be another tailwind that sets that ship in motion. Gold has been on the launching pad for a significant and sustainable move in either direction for months, and the Dollar’s downdraft might be the thrust to launch gold higher.
      ….
    As far as equities are concerned, a lower Dollar will float all boats. Just look at today’s price action. All assets -except bonds – are higher. However, it is all relative as higher equity prices in the face of a lower Dollar doesn’t really get you anywhere. No country has ever devalued its way to prosperity. Commodity based economies (i.e., Canada, Brazil, South Africa, and Australia) should outperform non-commodity dependent economies. Furthermore, a lower Dollar will keep the inflation debate -real or perceived – on the front burner, and this will be a definite headwind for equities. In sum, a lower Dollar should benefit Treasury yields and commodities more than equities.

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July 18, 2009 Posted by | Economics | , , , , | Comments Off on U.S. Dollar at Risk of Unraveling

Joe Biden: We Have to Go Spend Money to Keep From Going Bankrupt!

Biden Health Care Reform

  • Politicians can utter such nonsense and believe in their own lies. Over spending and living beyond means are what got America in this mess in the first place. Unfortunately, there are too many sheeple who will believe anything you tell them. CNSNews.com reports :
      
    Vice President Joe Biden told people attending an AARP town hall meeting that unless the Democrat-supported health care plan becomes law the nation will go bankrupt and that the only way to avoid that fate is for the government to spend more money.
      
    “And folks look, AARP knows and the people with me here today know, the president knows, and I know, that the status quo is simply not acceptable,” Biden said at the event on Thursday in Alexandria, Va. “It’s totally unacceptable. And it’s completely unsustainable. Even if we wanted to keep it the way we have it now. It can’t do it financially.”
      
    “We’re going to go bankrupt as a nation,” Biden said.
      
    “Now, people when I say that look at me and say, ‘What are you talking about, Joe? You’re telling me we have to go spend money to keep from going bankrupt?’” Biden said. “The answer is yes, that’s what I’m telling you.” (
    Listen to Audio)

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July 18, 2009 Posted by | Economics | , , | Comments Off on Joe Biden: We Have to Go Spend Money to Keep From Going Bankrupt!

Jesse Ventura: They Spent $100M Investigating Clinton But Only $4M On 9/11!

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July 18, 2009 Posted by | GeoPolitics | , , , | 20 Comments

Max Keiser: Goldman Sachs Gang Are ’Scum’ Who Have Co-opted U.S. Government !

  • Draw your own conclusions!

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July 18, 2009 Posted by | Economics | , , | Comments Off on Max Keiser: Goldman Sachs Gang Are ’Scum’ Who Have Co-opted U.S. Government !

Ex-Israeli Minister Shulamit Aloni: Calling People Anti Semitic is a Trick to Stifle Criticism! We Always Use it !

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July 18, 2009 Posted by | GeoPolitics | , , , , | 13 Comments