"You don't get it. US debt doesn't matter at all and no one expects the US to pay debt."
Catnip, if history is any guide, then there is no other time in history when a country amasses such debts, then starts the "printing press" in order to pay its current obligations and after this their currency appreciates. Just check it out. So history tells you are getting it all wrong.
Catnip, we are talking about real yields here. No one is tupid enough to go buy US asstets with an yield of 5% when the inflation is 7% and the real yield is negative 2%. Are clear about that?
usikpa, and you think these commodity prices are at these level without a reason. And that USD could rise in the long run? And you think that inflation in the USA is below 1% and even below 0.5% And you think that these nominal yields of 3.8% are real? f you strip the inflation component (I mean real inflation), the yield are negative. Fed is supporting the US treas. market. If not, the US treas. would sell-off and yield would go towards 5+ % to compensate for inflation. The other day, the Fed became the largest holder of US treas., surpassing China.
So you still think that EURUSD of 2.00 and above is not possible? Come on. Only way this USD denominated commodity inflation in the World could be stopped is when USD devalues. And the markets expect that. Otherwise all countries in the World risk following the Egypt scenario. Do you want that in your country???
And you get it? Come on, catnip. You showed that your analysis is not good for forecasting fx. Back down at 1.20 you expected 1.00 (parity). But EUR climbed to 1.40. So you think you got it right? Then again at 1.30 a month ago you expected 1.27 and 1.20. However EUR climbed to 1.38. So again you got it right? Come on. You have proven time ana again that you do not know shit. So stop this chit-chat of yours.
EONIA / SHIBOR/ LIBOR - all irrelevant What is relevant is that USA is bankrupt and the only option is to devalue the dollar. Gold is headed to $2000 and above.
So given that EU is imposing austerity measures and cutting deficits and given that US is not even trying (I mean trying not just planning to) to cut defecits, it could be that EURUSD is heading to 2.00 and above. Think the unthinkable.
Try publishing this in the UK weekend papers: Traders bet BankofEngland will raise rates to 6.25% --highest since 1… https://t.co/GWXrTEAk4R(1 year ago)
Poor start to a slow market day as Ezone PMIs disappoint. Im still keeping an eye on the rare (-2%) USD-GOLD combo,… https://t.co/UyRzWsRbs7(1 year ago)
-5% YTD is not good, while -7% from the year highs can be tough. Gold traders have their eyes fixated on this for n… https://t.co/NV5UMKsfNo(1 year ago)
ما وراء هبوط الدولار مع الذهب و من منهما يتمكن الارتداد؟
موعدنا الآن في غرفة شركة إكس أم لجلسة الأسواق
https://t.co/Y7tD0RxCS2
@XM_COM (1 year ago)
Jobless claims > 300k before next FOMC meeting would be ideal for Fed to make up for any CPI upside surprise (1 year ago)
"Cook & Eat at Home" scheme may come next to defeat UK inflation... (1 year ago)
Earlier in the week gold selloff was attributed to smaller than exp China EASING. Metal is now holding v well despi… https://t.co/ZW9cmXTPWW(1 year ago)
Why? Because this will happen only in your dreams. That is why :))))
Catnip, if history is any guide, then there is no other time in history when a country amasses such debts, then starts the "printing press" in order to pay its current obligations and after this their currency appreciates. Just check it out. So history tells you are getting it all wrong.
No one is tupid enough to go buy US asstets with an yield of 5% when the inflation is 7% and the real yield is negative 2%. Are clear about that?
And you think that these nominal yields of 3.8% are real? f you strip the inflation component (I mean real inflation), the yield are negative.
Fed is supporting the US treas. market. If not, the US treas. would sell-off and yield would go towards 5+ % to compensate for inflation.
The other day, the Fed became the largest holder of US treas., surpassing China.
So you still think that EURUSD of 2.00 and above is not possible? Come on.
Only way this USD denominated commodity inflation in the World could be stopped is when USD devalues. And the markets expect that. Otherwise all countries in the World risk following the Egypt scenario. Do you want that in your country???
Sugar at 30 yr high, Cotton 150 yr high... aside from that- deflation. Yes & CORE PCE Price index hit ALL TIME LOW ! ! $$
And you think USD could rise? You must be kidding me.
Back down at 1.20 you expected 1.00 (parity). But EUR climbed to 1.40. So you think you got it right?
Then again at 1.30 a month ago you expected 1.27 and 1.20. However EUR climbed to 1.38. So again you got it right?
Come on. You have proven time ana again that you do not know shit.
So stop this chit-chat of yours.
What is relevant is that USA is bankrupt and the only option is to devalue the dollar. Gold is headed to $2000 and above.