Stocks Up And USD Down – You Can't Have Both

This is what I’ve been getting at for some time – with respect to the never-ending “money printing” and “phony elevation” of U.S stock prices.

You can’t have high stock prices and a weak currency forever, as “at some point” the scales will tip back, and the currency will rise as assets priced in USD are sold.

You can’t have your cake and eat it too….or at least – not forever.

The Fed “needs” a weak dollar, in order to satisfy a number of its sinister plans.

  • A weak dollar helps “dramatically” when considering the amount of debt the U.S has. Paying out with “freshly minted funny money” has been quite a strategy indeed.
  • A weak dollar helps promote exports and encourages investors abroad to “buy U.S.A” cuz – with respect to your their own currency, everything looks cheap cheap!
  • A weak dollar translating into low-interest rates allows big corporations to “borrow cheap” ( too bad they then just go an invest the money in other countries though eh?)
  • Low interest rates force seniors ( who can’t make a return on savings ) into higher risk assets like the stock market, where they can then be completely and totally fleeced by the Fed’s big bankster buddies.
  • A weak dollar translates into inflated stock prices which deceives the general public believing  that “everything is ok” as long as the stock market remains elevated.

And  on and on and on and on and on…….

As of today….we are FINALLY seeing the inverse correlation of “a stronger USD and weaker stocks” start to take shape..as it well should!

A stronger US Dollar is a complete and total disaster for the U.S economy as along with it comes rising interest rates –  at a time where the U.S is already “practically” in recession.

The Fed has printed America into a deep deep corner as the ship finally starts to turn, with a rising dollar and falling equity prices finally putting the “fundamental balances” back in place.

3 Responses

  1. JSkogs May 8, 2014 / 9:58 am

    Kong! Ive been in the bush and then dealing with tax bedlam. Sorry I’ve been out of touch. I’ll email you later today. Great yen long triggers today me thinks. Hope you are well man!

    • Forex Kong May 8, 2014 / 10:07 am

      Hey!

      Right on J man….hope you are well.

      “Still” waiting on some solid confirmation of JPY to the moon

      I think this weekend and the referendum in Ukraine is gonna do it.

      • JSkogs May 8, 2014 / 10:48 am

        Ya now that another hour has gone by Im less excited about taking the positions. Waiting….

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