The Competing Currency War threatens to disrupt international relations
The year 2013 will be the year when the USDollar is isolated and set up for rejection
A return to the Gold Standard is in the works. The key to the
solution is a USDollar alternative, actually trade settlement outside
the USD
A Gold Trade Note is coming, the basis of Eastern trade, serving as a Letter of Credit
THE CURRENCY WAR HAS REACHED A HIGH FEVER PITCH
Watch for a G-20 Meeting flash point, especially if the US & UK
boycott the conference in Moscow beware the requiem for the US nation.
(Reuters) - The global “currency war” could get even worse if
Europe joins the fray, says the man widely credited with coining the
term.
Brazilian Finance Minister Guido Mantega told Reuters
European countries
should focus on reviving their economies with more investments, rather than trying to weaken the euro to protects jobs as
France has suggested ahead of next week’s meeting of
G20 economic powers.
Bill Gross predicting a “Credit Supernova.” Yes, that’s what the “Bond King” sees dead ahead. He knows, his firm has $2 trillion at risk of collapsing into the “Black Hole” coming after the Credit Supernova, when
the Federal Reserve cheap money finally explodes in America’s face, brings down the economy, again.
Gross’s Credit Supernova metaphor is the explosive headline on
his latest Pimco newsletter. So what’s a supernova? Jump over to the
Space.com’s parallel universe where you’ll discover a supernova happens
when a “blindingly bright star bursts into view in a corner of the night
sky … burns like a … brilliant point of light.”
A supernova is “the explosion of a star that has reached the
end of its life … Supernovas can briefly outshine entire galaxies and
radiate more energy than our sun will in its entire lifetime.”
Yes, a supernova is the “explosion of a star that has reached the end of its life.”
“End of its life?” Is America’s star economy burning
out? Sure sounds like it: Gross is doing more than just hinting with his
Credit Supernova metaphor. He’s predicting the collapse of the American
economy and global financial markets, far worse than the 2008 Wall
Street bank credit collapse, worse than the 2000 dot-com crash.
As the folks over at Business Insider put it: “Investment banks
have morphed markets with ‘Ponzi Finance.’ And time is almost up.”
The Macro Indicators are signaling there is potential trouble coming to paradise.
Goldman Sachs points out in a recent study that there is a remarkably
strong correlation which has emerged as a result of global central bank
policy initiatives. The steely eyed Tyler Durden at Zero Hedge points
out:
We have noted the odd cyclicality in macro data (and its leading
effect on the market) and it seems Goldman Sachs has also noticed that
something is different this time. For 15 years, the seasonal patterns in
Goldman’s macro index have been mild to totally negligible; but since
2009, something changed.
As the chart below indicates, it really is different this time as the
macro cycle has become extremely short and consistent (drop in H1, rise
in H2) – and is evident not just top-down but bottom-up in payrolls and
ISM for instance. Goldman expounds pages of statistical jiggery-pokery
to show what we suspected – that this is not weather or seasonality
effects, and is not just US (UK and Europe see same pattern of six month
cycles); but appears driven by central-bank policy actions (which have
been more concentrated in Q4/Q1). 2013 is playing out exactly as the
last three years has – with a downdraft that is set to continue for the
next few months – though they note that stability in oil prices this
time (and recent expansion of easing efforts – Fed and BoJ) may shift
the pattern.
For now, it appears the macro cycle is becoming
shorter and warrants concern as they are unable to find anything but
‘reality’ as a driver of this odd cyclical pattern as the real economy
fades rapidly after each and every infusion of promises from the Central
Banks.
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