Thursday, August 23, 2012

FOMC signals QE3

Quantitative Easing made the news on Wednesday as Bernanke decided that QE3 might be in the cards. Even though Bernanke is pushing for QE, not all FOMC members agree with it but many did agree with the notion. At this point however it could just be some fancy jawboning to stimulate the market so while it's in the card - it's not a sure thing.

The current Fed pledge is to keep rates at “exceptionally low levels” through at least late 2014 will not change and may extend further into 2015.

The jawboning by the FOMC did little to move the markets but there was a jolt against the USD and Gold made new short-term highs in anticipation of the move which will not occur until September (if it does).

Stay tuned!

Neal Vanderstelt - Currency Analyst
Please rate & recommend:

Sunday, August 12, 2012

Perhaps the US is similar to the Roman Empire when it was about to collapse?

The United States currently is deployed in over 150 countries around the world according to wikipedia:

United States military deployments

Map of U.S. Military bases around the world
The current benchmark rate is 0.25 (nearly zero) and on top of the loose monetary policy there's additional manipulation in the form of Quantitative Easing - currently there has been 2 stages of QE (QE1 and QE2) and Operation Twist.

The Roman Empire (like the United States) had it's empire spread out all over the known world (Map of the Roman Empire).
Like the US the Roman Empire had a currency problem. The empire faced hyperinflation caused by years of coinage devaluation. The problem was so intense that the currency had very little value and a bartering system was often used making the ease of trade difficult. It wasn't long after Roman coins had virtually no value that the empire itself collapsed.

With a spread out military and a debased currency that is mocked by other countries is the US leading down the path of a total collapse?

Fed Continues Operation Twist
United States loses prized AAA credit rating from S&P

Those that don't learn from history are doomed to repeat it.

Neal Vanderstelt - Currency Analyst
Please rate & recommend:

Friday, August 10, 2012

Max Keiser : European big banks technically insolvent

France, back in a recession for the 2nd time in 3 years. Italy's economy contracting point seven percent in the last quarter:

And for the powerhouse, Germany: its Industrial, construction and manufacturing all slumped for June: The euro- zone debt crisis continues to threaten the survival of the 17-nation currency bloc, affecting non-Eurozone members, like the UK, where the Bank of England said it did not expect the UK to grow out of a recession. But the more alarming picture: the lack of growth, whether its for each country, developing countries, or the global economy as a whole.

Neal Vanderstelt - Currency AnalystPlease rate & recommend: