FOREX - Trends, Forecasts and Implications 2015(continued) - page 1612
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This "nonsense", however, has raised the dollar against the national currency by 10% in one day. Apparently this is not nonsense, but a deliberate action to undermine national economies. This is real economic warfare, worse than a hot one.
I have written before that the Fed is withdrawing printed quid from circulation for fear of going into hyperinflation. The monetary base is shrinking, hence the decline in commodity prices.
http://kubkaramazoff.livejournal.com/191633.html
You are absolutely right Professor. This is a war. But it started with the Arab Spring.
I advise you to read all the comments on the post at the link very carefully.
http://www.ecb.europa.eu/mopo/implement/omo/html/index.en.html
On 25 and 26 November the ECB poured in almost 100 yd euros and exchanged them for quid. Bypassing the market. That means bypassing the stock exchange. Now it has enough liquidity to flood any demand for quid. Just add up 2+2 and you get the answer.
There is no dollar, euro, pound, Swiss franc, yen and cable separately since late 2011, but there is a single monster currency. Swap transactions mean one thing - the currency will walk in a corridor as long as the swap is on. The Pindos are conducting a grandiose operation to devalue the dollar. This forces the Central Banks of developing countries to devalue their currencies. Otherwise the country is screwed. We feed the monster at the expense of pensioners, employees and our own budget cuts. But the monster is still not enough, it has long been accustomed to living beyond its means, at the expense of robbery.
Again, you write that they (the Fed) take the dollar out of circulation. But then they share it with the EU to inject it? I have cognitive dissonance ))
Geez, I don't get it )) You say they devalue the dollar. But it's going up! Honestly I don't understand SWAP all the way. One thing is clear, it passes the market - that is, the exchange rate has no effect whatsoever! Otherwise there would be a feast for speculators! What you are saying is that they have essentially exchanged their euros for dollars. So now they have a lot of dollars, reserves. And what are they going to put in there? What is the demand? So what you mean is that everyone will sell them the euro on the exchange and they will buy it up?
The dollar is rising because the monetary base is REDUCED. The Pindos printed a lot of quid, spit them out, but did not reach their inflation target of 2.5 percent. For fear of a "hyper" now they withdraw the paper from circulation and burn it, whereby the dollar goes up against other currencies. BUT,, since there are no separate currencies now (KubKaramazov's note "There are no currency wars there"), it is possible to devalue the quid through the euro (or any other of the 5 currencies) simply by printing euros and spitting them out into circulation (giving them out to commercial banks).
Having a bunch of quid can meet ANY demand for them on the exchange by supporting the euro (buying up euros from banks). I.e. you can sell expensive quid now and buy back cheaper ones later.
The dollar is rising because the monetary base is REDUCED. The Pindos printed a lot of quid, spit them out, but did not reach their inflation target of 2.5 percent. For fear of a "hyper" now they remove this paper from circulation and burn it, whereby the dollar, of course, rises in value relative to other currencies. BUT,, since there are no separate currencies now (KubKaramazov's note "There are no currency wars there"), the quid can be devalued via the euro (or any other of the 5 currencies) simply by printing euros and spitting them out into circulation (handing them out to commercial banks).
Having a bunch of quid can meet ANY demand for them on the exchange by supporting the euro (buying up euros from banks). I.e. you can sell expensive quid now and buy back cheaper ones later.
And again - how can they burn the dollar if they are printing it and giving it away to the ECB to support the eur? Who's going to burn those nachos afterwards? ))
So it turns out that they (the ECB) have plans to support the euro. But that contradicts their statements to the public about easing and other verbiage!
And again - how can they burn the dollar if they are printing it and giving it away to the ECB to support the eur? Who's going to burn those nachos afterwards? ))
If you really want to understand, read CubKaramazov. I can't put it all in a nutshell.
Now the dollar is not being printed (there is no QUE), it is being burned. The euro is being printed (LTRO). It's now one currency - that's the starting point. Swap on - corridor, off - trend.
If you really want to understand, read CubKaramazov. I can't put it all in a nutshell.
The dollar is not being printed now, it is being burned. The euro is being printed. It is now a single currency - that is the starting point. Swap on - corridor, off - trend.
So it all depends on which side to look at. On the one hand, if everyone is selling the euro, it should go down. But if the ECB buys it, then it supports it and it rises.
Everyone is what? The meat?
If the ECB is buying up the euro, it does not mean growth. They will feed everyone they want and then go backwards. That's what happened on the RTS when the Central Bank fed all the speculators with the ruble at a hundred a quid and moved back to 50. And at 50 it fed the willing again.
The Eur is in print, but not for mere mortals. They don't see its liquidity! It's for the Fed.