COMMENT: Mr. Armstrong, I learn Reuters feedback this morning and so they stated “The greenback sank to a three-year low … the dollar down greater than 10% for the yr. If it stays that manner within the coming days it is going to be its greatest first half of a yr fall because the early Nineteen Seventies – successfully the period of free-floating currencies.”
The exaggeration and bias within the monetary information have turn into outrageous. I’ve been on this subject for 30 years. By no means have I discovered the press so dishonest and politically pushed. They’re attempting to create the collapse of the greenback to overthrow Trump. That is just like the polls. They lie about all the pieces.
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REPLY: I absolutely agree. It makes me need to stop and conceal beneath the covers, for they’re intentionally distorting the world, and all the pieces they do is to push us into conflict. I’m so sick of the exaggerations and lies, as they don’t care concerning the folks, the nation, or our future. NOTHING – simply the second and how you can win in any respect prices.
Right here is our Greenback Index again to 1902. It lets you see the true development and put all of it in perspective. Under is the US Greenback Index, which started in 1988. It omitted the greenback excessive in 1985, to not point out the greenback decline into 1976.
Right here is CNN faking the information, standing within the deepest puddle they’ll discover, whereas the movie crew is simply ankle deep. Every part is at all times the worst they’ll presumably challenge. They trash the greenback as a result of Trump desires to exchange Powell with somebody who will decrease rates of interest. Sorry, Trump is a biased borrower, not a lender. So he appears to be like at all the pieces from just one facet of the desk. Europe entered unfavorable rates of interest in 2014, strip-mining pension funds and financial institution reserves. Decrease charges hurt savers for the good thing about debtors. That is at all times a one-sided view that by no means is smart.
So let me see. Rates of interest rise in bull markets and at all times decline in bear markets. That’s actuality! Nonetheless, the press has in some way offered the concept that decreasing charges is bullish for the inventory market. It’s all based mostly on Keynesian Economics, which was based mostly on Authorities Intervention following Karl Marx. This presumption that the federal government is able to managing the financial system beneath socialism is merely presumptuous. Why fear. The socialists will take all the pieces, we’ll personal nothing, and be so excited, completely satisfied, and grateful, for of their e book, we’re too STUPID to grasp something anyhow.
Right here is the Nice Recession 2007-2009. The inventory market rises with RISING charges as a result of that exhibits there’s a demand for cash and investing. When charges decline and even went to NEGATIVE to punish folks for NOT investing, that’s the fact. That is precisely OPPOSITE of the nonsense the FAKE FINANCIAL NEWS stories as a result of they don’t give a shit concerning the fact. They should discover the deepest puddle to magnify all the pieces.
There’s NO definitive rule that even a particular stage of rates of interest will impression that market. The strongest bull market was 1929 and there we see the bottom stage of rates of interest. The opposite impression is CAPITAL FLOWS. Fort 1929, all of the capital poured into the USA as a result of it was right here, hiding throughout World Struggle I. There was the primary G4 assembly in 1927 when the central bankers satisfied the US to decrease rates of interest, and that may pressure the cash to return to Europe. That failed.
Should you assume the inventory market will DOUBLE, you’ll pay 20%.
If you don’t assume it is going to rise by 1%, you’ll not pay 1%.
