Blame The Emerging Markets – Right!

The emerging markets are more or less a product of the massive money printing that has been taking place in both the U.S as well Japan.

The reason “emerging markets” are falling is that “funny money” printed in the U.S has previously been “invested” in these emerging countries where one might actually expect a “reasonable return” – as opposed to investment directly in the U.S ( where one can expect “0” return ).

Big American banks take the “funny money” from Ben, and opposed to lending it to hard-working Americans, the money is used to invest in “other countries” where the likelihood of return is much higher.

What we are seeing is the harsh reality ( well I doubt it ) that the “free money” is coming to an end, and large investors are repatriating their “previously invested U.S funny money” back to their bank accounts in the U.S – in a “flight to safety”. It’s the Fed’s doing – not the emerging markets.

Here is my original post from back in September:

You’ve had plenty of prior warning.

5 Responses

  1. JSkogs January 27, 2014 / 1:43 pm

    Yen March contract looks like sideways consolidation vs reversal to me. So, more room to play. Looking for a reload sometime soon. The SPY with not too much more downside will reach that channel that has held up for a couple years now… I am going to play light with safety plays until I see what the reaction to that lower end of the channel is.

    • Forex Kong January 27, 2014 / 1:49 pm


      Typical “waste of time during U.S session” on a boring / flat churn of a Monday.

      Could easily drag right out til Fed bullshit late Wed afternoon – great.

  2. schmederling January 27, 2014 / 6:36 pm

    I have the DXY yet again close to a Neg fire on the daily….. stocks neg fire still running…. If anything the next 48hrs will provide some nice volatility if anything…… & that set-up in Silver which has been running some 30-days now…. all things looking very interesting…… Tesla continues to churn out profits on the short side….

    Cheers Schmed

  3. schmederling January 27, 2014 / 6:39 pm

    Also Aussie/USD firing off positive on the 30min – even if it’s just for a quick trade…. 🙂 the 1hr & 2hr should follow the fire…. then it’s back to wait & see….

    • schmederling January 27, 2014 / 8:06 pm

      Going to step out on the ledge here & jump in on Short USD/CAD……. what happens next is for the taking!
      Have the vest on for security – LOL!!

      Cheers Schmed,

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