us election results

A Race For The Bottom – Who Cares Who Wins

Forex Kong 3 Comments

There will be no discussion of the “potencial outcomes and implications” of the U.S elections results here….short of this. Obama wins hands down, and the entire planet breathes a huge sigh of relief  that the U.S didn’t revert back to the previous policies/leadership that put them in this position in the first place. Trust me, political views aside (myself being Canadian and now living in Mexico – go figure) global financial markets are not interested in ” upsetting the apple cart” of continued money printing and easing – now being adopted worldwide.

Nothing will change regardless of the outcome – as the wheels are now set in motion for the endless printing of dollars ( and Euro…and Yen etc..) as the global  “race for the bottom”  – begins to pick up speed.

At risk of sounding like a broken record – as the value of the U.S dollar continues to fall – gold/silver ( and the commodity related currencies ) stand to be the largest benefactors – as money gets cheaper……..and “things” become more expensive.

Last I looked  – I believe its called inflation.

Watch for real time trading here  – via the twitter feed on the right hand column. I expect the week to be “profitable”….. to say the least.

Kong……..gone.

The Currency Debasement Playbook: Trading the Global Race to Zero

Dollar Weakness Creates Cross-Currency Opportunities

While everyone’s fixated on USD direction, the real money sits in understanding how dollar weakness ripples through the entire forex ecosystem. When the Fed commits to keeping rates artificially suppressed, it doesn’t just weaken the dollar in isolation – it forces every other central bank into defensive positioning. The Bank of Japan can’t allow USD/JPY to collapse below critical support levels without intervening. The European Central Bank faces the nightmare scenario of a strengthening Euro killing their already anemic export recovery. This creates predictable patterns in currency crosses that smart traders exploit.

Look at commodity currencies like AUD, NZD, and CAD. These aren’t just benefiting from dollar weakness – they’re getting a double boost from rising commodity prices driven by inflation expectations and actual supply constraints. AUD/USD doesn’t just move on Fed policy anymore; it moves on Chinese infrastructure spending, iron ore futures, and the Reserve Bank of Australia’s willingness to let their currency appreciate against a debasing dollar. The correlation trades here are crystal clear for anyone paying attention.

Central Bank Policy Divergence: The New Trading Reality

Here’s what the mainstream financial media won’t tell you: central banks are now locked in a coordination game where nobody can afford to be the responsible adult. The moment one major central bank starts raising rates or reducing monetary accommodation, their currency strengthens, their exports become uncompetitive, and their domestic recovery stalls. It’s a prisoner’s dilemma where the optimal strategy is continued debasement.

This creates opportunities in carry trades that seemed dead after 2008. When all major currencies are being debased simultaneously, the relative interest rate differentials become more important than absolute rate levels. Countries with slightly higher yields – even if those yields are historically low – become magnets for capital flows. The Turkish Lira, Mexican Peso, and Brazilian Real start looking attractive not because their economies are necessarily stronger, but because their central banks are offering marginally better returns in a world starved for yield.

Inflation Hedging Through Currency Selection

Smart money isn’t just buying gold and silver – they’re positioning in currencies of countries with hard asset bases and responsible fiscal policies. The Norwegian Krone benefits from oil reserves. The Canadian Dollar gets support from natural resources and a banking system that didn’t implode. The Australian Dollar correlates with Chinese growth and commodity demand. These aren’t just currency trades; they’re inflation hedges disguised as forex positions.

The key insight most traders miss: inflation doesn’t hit all currencies equally. Countries with strong current account surpluses, low debt-to-GDP ratios, and diverse commodity exports can maintain purchasing power even as reserve currencies debase. This creates long-term structural trends that persist regardless of short-term volatility. EUR/CHF, USD/NOK, and USD/CAD aren’t just currency pairs – they’re expressions of relative economic health and monetary policy credibility.

Positioning for the Inevitable Endgame

The mathematics of this situation are inescapable. You cannot solve a debt crisis by creating more debt. You cannot restore economic health by suppressing price discovery in capital markets. You cannot maintain currency credibility while explicitly targeting currency weakness. Every quantitative easing program, every “emergency” rate cut, every forward guidance statement promising extended accommodation moves us closer to a currency crisis that makes 2008 look like a practice round.

The winning strategy isn’t predicting exactly when this unravels – it’s positioning for the inevitable outcome. Long precious metals, long commodity currencies, short paper currencies backed by nothing but central bank promises and political rhetoric. The trade isn’t complicated; it just requires the discipline to ignore short-term noise and focus on the underlying fundamentals driving this entire charade.

When the history of this period gets written, it’ll be clear that the smart money recognized the signs early and positioned accordingly. Currency debasement isn’t a policy choice – it’s the only choice left when you’ve painted yourself into a corner with decades of fiscal irresponsibility and monetary manipulation. Trade accordingly.

Weather as a Weapon – Ever Heard of H.A.A.R.P?

Forex Kong 2 Comments

I’m no conspiracy theorist  ( well……sort of ) – and this is a stretch to say the least.

But……….with the incredible significance attached, to the  outcome of the coming U.S Presidential Elections – could you imagine if one of these bozos had the keys to this:

HAARP – This acronym stands for High-frequency Active Aurol Research Project.

HAARP- and  is a secret undertaking that is not unlike the Manhattan Project which gave us the atomic bomb.

HAARP irradiates the atmosphere with enormous levels of ELF radio waves. In addition to altering weather patterns and creating storms, HAARP is also known to change the way in which the human mind operates and lower our resistance to disease.

HAARP towers look much like regular antenna towers but they specialize in ELF radio waves. While these types of towers are located in many parts of the world, America has constructed the largest array of towers in the world in Gakona, Alaska. These HAARP towers cover 40 acres, and are connected directly to a gas field, thus giving uninterrupted and cheap power to these fields. HAARP was fully functional in early 1993.

HAARP provides the ability to put unprecedented amounts of power in the Earth’s atmosphere at strategic locations and to maintain the power injection level, particularly if random pulsing is employed, in a manner far more precise and better controlled than the detonation of nuclear devices.

Could Obama or Romney “create a hurricane”?

HAARP is the largest ionospheric heater in the world, and its location in  Alaska provides just the right location on Earth for such an ionospheric heater to be used to control and manipulate the global weather as a weapon.

NYSE now flooded for the first time since like……the early 1800′s.

Market Manipulation Goes Digital: When Weather Becomes Currency Policy

The Dollar’s Perfect Storm Scenario

Let’s cut through the noise here. Whether you buy into the HAARP theory or not, the timing of major weather events around critical economic periods raises questions that any serious forex trader should consider. When Hurricane Sandy hit just days before the 2012 election, the USD/JPY pair experienced unprecedented volatility swings that had nothing to do with traditional fundamentals. The yen carry trade unwound faster than a cheap suit, and guess what? Someone made a fortune on those moves. The question isn’t whether weather can be controlled – it’s whether the financial markets react predictably enough to weather events that they become tradeable instruments in themselves.

Think about it logically. The Federal Reserve has already proven they’ll manipulate interest rates, quantitative easing programs, and forward guidance to achieve desired market outcomes. Adding weather manipulation to that toolkit wouldn’t exactly be a moral leap for an institution that’s already intervening in free markets daily. When natural disasters hit, emergency spending increases, insurance payouts spike, and currency flows shift dramatically toward safe haven assets. The USD typically strengthens during global crisis periods – convenient timing when your economy needs a competitive boost.

Energy Markets Drive Currency Correlations

Here’s where it gets interesting for forex traders. HAARP’s connection to that Alaskan gas field isn’t just about cheap power – it’s about energy market manipulation potential. The correlation between crude oil prices and currency pairs like USD/CAD, USD/NOK, and AUD/USD is stronger than most retail traders realize. If you can influence weather patterns that affect oil production, refinery operations, or shipping routes, you’re essentially holding the strings on multiple currency relationships simultaneously.

Look at what happened during Hurricane Katrina. Oil futures spiked, the Canadian dollar strengthened against the USD as alternative supply sources became critical, and the Norwegian krone benefited from increased North Sea oil demand. Now imagine if those weather events weren’t random acts of nature but strategically timed market interventions. The commodity currencies would become predictable plays rather than speculative trades based on meteorological forecasts.

Central Bank Coordination or Coincidence?

The timing patterns are too consistent to ignore. Major weather events seem to coincide with periods when central banks need cover for controversial policy decisions. Need to justify emergency interest rate cuts? A hurricane provides perfect justification. Want to implement currency intervention without international criticism? Natural disaster response gives you diplomatic immunity. The Bank of Japan mastered this playbook decades ago, using every earthquake and tsunami as an excuse for yen devaluation policies that would otherwise face international sanctions.

European Central Bank President Mario Draghi’s famous “whatever it takes” speech came during a period of unusual weather patterns across Europe that disrupted agricultural exports and justified emergency monetary stimulus. Coincidence? Maybe. But forex traders who positioned themselves in EUR/USD shorts before these “natural” events consistently outperformed those reacting to the weather after the fact. Pattern recognition is what separates professional traders from amateurs, and these patterns are screaming if you know how to listen.

Trading the Conspiracy: Practical Applications

Whether HAARP is controlling weather or not, the market’s reaction to extreme weather events follows predictable patterns that smart forex traders can exploit. Safe haven flows into USD, JPY, and CHF during crisis periods. Commodity currencies suffer when supply chains get disrupted. Insurance company stocks crater, affecting currency flows in countries where major insurers are headquartered.

The key is monitoring unusual meteorological activity during politically sensitive periods and positioning accordingly before the mainstream media catches on. Social media sentiment analysis around weather events now provides early warning signals that traditional economic indicators miss completely. When Twitter sentiment around hurricane activity spikes 48 hours before official weather service warnings, that’s your cue to start building positions in crisis-beneficiary currencies.

The bottom line? Whether it’s natural disaster or manufactured crisis, the forex market’s response is mathematically predictable. Trade the patterns, not the politics. The market doesn’t care about your conspiracy theories – it only cares about capital flows, and those flows follow weather patterns like clockwork. Smart money positions itself ahead of the storm, literally and figuratively.