Friday, March 07, 2014

US Dollar Slides To The New Low 79.51 As Ukraine Situation Moves To Economic Warfare


  US Military Complex can not be challenged by anyone in the open conflict, but once things are moving into the field of asymmetric economic warfare tactics of Financial Wars U.S. has a problem. Economy can not really handle any external shocks now, Bubble in the equity markets is not translating into the healthy growth so far. Any serious correction in the market can bring very weak economic data further in the proximity of potential recession. And this is where Ukraine situation is coming so handily to the FED's rescue out of Taper. Do you really think that the banks want the tigthening of the money supply now? FED wants Weak US Dollar, FED wants Inflation and FED is ready to pause Taper at any excuse now. Further escalation around Ukraine situation will provide this excuse right in time when the economic data will be turning even weaker than now.

Dollar Crashed Below 80.00 What Is Next For Gold, Copper And Lithium? TNR.v MUX ILC.v GDX

"In a few words: they all are going much higher now. Let's discuss why we think it is going to be the case. What is coming next for stocks and commodities? The concept of Great Inflation in 2014 was first introduced here by Toby Connor article and so far the market was unfolding as he has predicted. The most important observation here is that not only we are seeing the first signs of increased money velocity and unfolding Inflation in the different Commodities Breakouts, but that FED is actively looking forward to create Inflation. Janet Yellen statements about desired level of Inflation were quite a revelation for the Central Banker to say the least. Never fight the FED and with the help of Russia and China US dollar will slide down even more and Inflation will be coming not only onto your grocery bills, where it was never gone, but even into the massaged government statistic reports."

Gold Catalyst: Economist John Williams: Financial Collapse if Russia Sells U.S. Dollar Holdings TNR.v MUX GDX

 With Ukraine in the headlines Greg Hunter discusses with John Williams the complications for the US Dollar Reserve Currency Status of the ongoing Financial War. China has sold the record amount of US Treasuries in December and buying the record amount of Gold. Today US Dollar has crashed below 80.00 again and closed at 79.66. Russia has already warned US that any sanctions will come back to those who will implement it. With China siding with Russia we can expect the acceleration of De-Dollarisation now. 
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