Dollar getting smoked

[brat]

or so was reported about 3 hours ago....1100 central.

http://finance.yahoo.com/news/dollar-getting-smoked-155306751.html


Reported a couple of hours before the story above.

http://finance.yahoo.com/news/iran-ditching-dollar-134700360.html


and it gets better....... Stocks took a 380 hit.

http://money.cnn.com/2015/01/27/investing/stock-market-dow-dive/index.html?iid=H_MKT_News

[JohnyMac]

I think we are starting to see the beginning of a correction world wide.

On a scale of 1-10 on the financial Richter scale with 10 being that California slips into the Pacific; I think we are going to see steps of financial earthquakes in Q1. Maybe not a 8 or 9 but certainly a major correction of 20-30% first in the stock market. With that will come the beginning interest rate hikes.

Interest rates have to increase so we can borrow more money. Right now, with the recent QEing in the EU, we have to to compete for investing dollars. with them, Russia and some other countries.     

[Nemo]

Gold is up to $1295.00 (up $18.00) and Silver is up to $18.12 (up $0.25).  http://www.monex.com/

Gold is up about $150.00 over the past 3 months.  Silver is up about $3 over the same time frame.

When it takes more dollars to buy the same thing means that dollar is worth less.

So what happens now? Tell me that accurately and I will make 10 million in the next 6 months.  And I will be happy to  share-- but if you're wrong . . ..

Nemo

[JohnyMac]

Many (not all) economists think that gold will be over $2,000- an ounce by year end.

If Q1 continues to go the way it is going, e.g. Russia, EU QEing, more EU countries drop out of the Euro that $2,000- is a conservative number.

But what do i know....

[DMCakhunter]

A CNBC article on the dollar.
http://www.cnbc.com/id/102377813

[JohnyMac]

Interesting article DMC.

I know that you have just attended a conference that basically said that all is golden till 2025-30. IMO I don't think so.

More than anything, I fear war brought on by collapsing economies such as Russia. I also fear collapsing economies and the spreading caliphate to Europe.

To many storms swirling around to not at a point form and give the globe a category 4-5 hurricane. 

[DMCakhunter]

JM,
Not all rosy. Supposed to be a recession in 2019.
But it does look like the US jobs market is getting hit right now.
Here is another article, on the currency war.
http://www.cnbc.com/id/102379625

[JohnyMac]

DJIA up 300+ points today. YTD down .9%.

It's interesting that the market drops a "shit ton" in a 30 day period and then comes back to recoup 90% of losses. Somebody is making money. 

[Nemo]

Its all manipulated by the big banks and big money.  Us little guys are screwed in the process.

Nemo

[JohnyMac]

Yes Nemo, however I think it is getting manipulated more by the US Government & the Fed. One of the benefits of QEing is the stock market goes up.

Once the QEing stops and or interest rates go up the stock market will start it's free fall. I read somewhere that for every quarter point up tick on the loan rate = about 5-10% correction in the market.

Maybe DMC can speak more to this....

[DMCakhunter]

JM,
I don't know how much small rate changes have on the market, but it is all about confidence. When a company posts better than expected results, the stock goes up. When a good number of companies are posting better results the entire market goes up, due to confidence. When unemployment goes up, it results in a lack of confidence.
I will point out that the energy companies are all posting lower results, cutting employment and reducing investment due to the drop in crude. This is a lack of confidence, and just wait for the effect to ripple thru the holders of these stocks, the hedge funds, pension funds and energy investments. The run up in energy has caused many entities to hold more of these stocks, this will result in the market to drop much farther than it has so far.