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COMPLEXITY – Key to Reality

COMMENT: Marty, you called for a pop in the Euro and I then see a slight pop in gold and decline in the Dow. Everything really is connected. Thank you so much for opening my eyes. REPLY: Yes. You are seeing the world for what it really is. Everything is connected and nothing moves in […]

Markets in Review

The reaction rally in the markets appears to be unfolding on schedule. From the broader perspective, a corrective process in equities will send the residual cash into bonds and this may help create the final bubble top in interest rate markets. This should materialize with a correction in the dollar and that pop in the […]

Interest Rates – Dollars – October

Some have asked will the dollar has previously fallen with higher interest rates so why will the opposite unfold now? The answer to that question is rather important to grasp – YES and NO. Sometimes YES and sometimes higher interest rates reflects a weak currency but NO for higher interest can reflect also a strong […]

A Reason to be Optimistic

 While confronting the fact that we are in a terrible downward spiral with a major Sovereign Debt Crisis which cannot be prevented because we are plagued by total corruption in government,  the ray of hope comes from these profound events I call a Crash & Burn. They are as Schumpeter described, waves of Creative Destruction. […]

Where to Hide – Public v Private

QUESTION: There’s a point I’ve been trying to understand and every time that I read your writings I’m staying more and more confused: How it will be possible with the deflation that already affects several countries, with the bubble burst the bonds, with the financial economic chaos that will destroy several companies, bankruptcy of business, […]

Surviving Your Own Trading Decisions – You Can Be Your Worst Enemy

  One of the biggest reasons people will lose money trading is they are too biased and it becomes a struggle against a particular market. Be it gold and fighting against the downtrend or something like the DAX and fighting against a rally. Whenever you are on the opposite side of a trend, you are […]

Quantity Theory of Money is Being Scrapped

The Quantity Theory of Money that an increase in supply should result in a decrease in its purchasing power (inflation) is being seriously questioned behind the curtain. The simplistic idea is starting to be exposed as an ancient myth. It is interesting how many phone calls are coming in from around the world as people […]

“What the bloody hell is going on!”

  Comments coming back from the traders in the City of London have been interesting. “What the bloody hell is going on!” Dealers have all had position limits cutback, and traders seem to have a diminishing desire to play as they will not be paid anyway. Those that have had the chance to move to hedge […]

The Fed – Rates – Objectives

  U.S. stocks rallied on Wednesday after the Federal Reserve suggested a less aggressive timeline for raising interest rates even as it opened the door for the first hike in almost a decade. The Fed has come under lobbying from other countries not to raise rates. The Fed will comply for now, but when the […]

ECB Riots Trash Frankfurt Turning into War Zone

  The violent protests downtown Frankfurt simply paralyzed the city. Barricades were burning everywhere and at least 90 policemen were injured. The city of Frankfurt, normally the obedient Germans would never act in such a manner, yet the city was reduced to a war zone. No doubt they will be looking at further restrrictions now […]