Re Parts of link
“The Russian Ruble has collapsed despite efforts by the Russian Central Bank to “slow” the decline. It traded at lifetime lows last week…down ~40% since June…down 60% since February 2013. The sharp fall in oil prices and sanctions pressured the currency…but capital flight has hammered the Ruble.
WTI Crude hit 5 year lows last week…down ~30% since June…Gold hit 4½ year lows…down ~30% from its 2011 ATH…the major commodity indices hit 4 year lows…down ~30% from their 2011 ATH
http://moneytalks.net/article-and-commentary/todays-best-money-making-ideas/currency/13834-correction-in-dollar-bull-market-commodity-bounce-.html”
Comment:
Richey, KEY WORD JUNE. My View. Look at the 18 month currency charts at link below. The Dollar went STRAIGHT up since June. And pretty much in unison, most other currencies trended down. Makes sense being everything is priced in Dollars.
The Job of the US Federal Reserve, since 1945, has been to “manage” the global economy. They recently admitted that by saying they were concerned about the global economy. It’s their “baby” and very proud of it. The ENTIRE global economy.
Since 1945 they have been putting money, credit, inflation or industries where needed the most. Like Europe and Japan right after WW II for example. Fast forward. Briefly. The US economy after 1945 had post war boom, lots of overtime pay, shortage of labor, and no wives working, that lasted until the 1971 to 1975 era.
After that? 1975. MY VIEW was the Fed Res decided the USA was fat and spoiled, the rest of the world was lean, or needed prosperity and transferred money, credit, inflation and many US industries and jobs overseas. It was obviously good for big corporations too. Cheaper labor and tax incentives.
The USA 1980 to 2001 had a deflation in labor and materials, and they started dropping the dollar from 120 after 2001. By 2008, it became obvious the USA was drained enough, and they stimulated the USA right up until JUNE.
That’s the month imo, the Fed Res started chocking off the US economy, figuring that we were ok for a while and now they can start stimulating the other countries like Europe and Japan, with lower currencies. Dollar going straight up like that can’t be a natural trend.
They may as well have done it over night like after the war they went from $1 = 1 Yen overnight to $1 = 360 Yen for example. By the way the US is slowing down after JUNE too.
So the main question now is……How long will the Fed Res let the USA producers “hang” with a stronger dollar? How bad will they let the US economy contract before they go back to helping the USA?? The KNOW now its important for US consumers to have higher wages, better credit ratings, and plenty of money to spend on crap, or the rest hurt again.
I always suspected China was the latest and greatest benefactor of the Fed and eventually they were going to be sacrificed next, like the USA after 1980, and that trend has started.
18 month charts:
http://finviz.com/futures_charts.ashx?t=CURRENCIES&p=w1