Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.Wednesday, August 24, 2011
Currency Collapse - Where Now ? / Currencies / Fiat Currency
One thing is sure and certain. Permanent avoidance of economic, financial and monetary reality has resulted in the USA, European Union and Japan facing unmanageable and self-reinforcing debt spirals that - logically - should lead to currency collapse. By political decision, the "only solution" is to decree harsh austerity plans cutting economic growth and government tax revenues, and paper over the problem with massive amounts of newly printed currency. The only logical result is a stampede into gold and other precious metals. Occasionally, and without conviction, there will be a partial selloff in gold and some dip buying of eroding and fragile equities.
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Tuesday, August 23, 2011
U.S. Dollar, the Mother of all Mathemagical Derivatives / Currencies / US Dollar
We all think we know the story of the recent ‘bubble in credit’. As the explanation goes; Americans took on too much debt, those debts were ‘packaged up’ into complex financial instruments, those instruments were then bought, sold and ‘re-packaged’ by people who didn’t even understand them, blah blah blah… Even with this cursory and boringly consensual view of recent history, at least people have figured out that they shouldn’t blindly trust the mathemagicians… or have they? Here I ask; what about the king of all derivatives; the one that deviously subsumes all others? Indeed, what about the derivative that even derivative traders assume to be axiomatically fundamental and distinctly not derived?
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Sunday, August 21, 2011
Fiat Paper Currencies Finally Redeemed for Gold / Currencies / Fiat Currency
The basic unwillingness of politicians to face economic and financial realities has caused the United States and European Union to face currency collapse. The politicians are content literally to paper over the problem with massive amounts of newly printed currency. This means that savvy investors, facing major real losses, are turning increasingly to gold. In essence, even though currencies are no longer on a gold standard, they are increasingly being "redeemed" for gold in the marketplace.
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Friday, August 19, 2011
Temporary Halt Seen in USD/CHF's Slide / Currencies / Forex Trading
USD/CHF has been grinding lower through 2011 and recently the pace accelerated. A s/term halt and sharp rebound has followed, but at the moment this could only be temporary.
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Tuesday, August 16, 2011
Downward Pressure Builds Again for the US Dollar / Currencies / US Dollar
The 'safe haven' status of the US dollar maybe coming to an end. Normally during times of market corrections, traders run to the American currency for protection. However, during the early August market drop, the big dollar barely moved. Though T-Bill auctions were well bid, there was little increase in demand for the greenback.
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Tuesday, August 16, 2011
Time to Buy the U.S. Dollar? / Currencies / US Dollar
We last reviewed the currencies in early July: http://caldaro.wordpress.com/2011/07/04/foreign-currency-and-usd-update/. Since then, it appears, a lot has changed. The world’s equity markets have entered bear markets, US Bonds have been soaring, commodities have generally weakened, Gold has been making all time new highs, and the Swiss Franc (CHFUSD) has gone parabolic.
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Monday, August 15, 2011
UnHappy 40th Birthday for Fiat U.S. Dollar / Currencies / US Dollar
August 15 marks the 40th birthday of the Federal Reserve Note as a completely fiat currency.
On that date, on August 15, 1971, Richard Nixon commandeered the airwaves to announce the closing of the gold window. According to him, this was necessary to protect the US dollar from attacks from the "international money speculators'.
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Monday, August 15, 2011
Swiss Government Bluffing on Swiss Franc Currency Target? / Currencies / Fiat Currency
Bloomberg reports Franc Weakens Against Dollar, Euro After Report Currency Target Discussed
Read full article... Read full article...The franc weakened after SonntagsZeitung reported over the weekend that the Swiss government and the central bank are in “intense” talks over setting a possible target for the currency, citing unidentified people close to the situation.
Friday, August 12, 2011
Beginning of the End of the Current Fiat Monetary System / Currencies / Fiat Currency
David Galland, Managing Director Casey Research writes: I am beginning to feel a bit like one of the French unfortunates stumbling through the fog in the Ardennes, circa 1914. Except that, instead of Germans full of deadly intent coming at me in the gloomy forest, it is a flock of black swans.
As it was for the French in the Ardennes, the number of problems - then Germans, now black swans - is becoming overwhelming.
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Friday, August 12, 2011
Can Revulsion with the Federal Reserve Note be Sustained over the Weeks and Months Ahead? / Currencies / US Dollar
We seem to have reached an intermediate-term extreme in revulsion for the Federal Reserve note. It seems to us that the status quo of the currency markets is highly dependent on the Federal Reserve accommodating the market’s perception of it. Here, I present the usual Federal Reserve balance sheet charts and briefly outline why we continue to anticipate a short-term rally in the dollar.
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Friday, August 12, 2011
Pullback In AUD/USD Hits Key Support Area / Currencies / Forex Trading
After reaching a target on the long term chart AUD/USD has pulled back smartly, testing a pivotal Fibonacci support area. Bears will strengthen their ranks on a break of this.
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Wednesday, August 10, 2011
Irredeemable Fiat Currencies, The Ever-Changing Means of Mr Doubter… / Currencies / Fiat Currency
Mr Doubter, otherwise known as the child who pointed out the Emperor’s lack of clothes, has always played a key role in monetary affairs. However, the tools with which he has done his doubting have evolved over time. Here, I detail the means by which alert speculators have questioned the currency systems of the past, and the means by which they question the irredeemable fiat currency systems of today.
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Wednesday, August 10, 2011
Swiss Franc Safe Haven Becoming Dangerous? / Currencies / Forex Trading
You have probably read it many times the last couple of days: People are rushing into safe havens such as Gold, the Swiss Franc and the Japanese Yen. When the mass is doing something, we pay attention. We get cautious. We know that if you follow the mass, you will burn your hands. Therefore, we analyzed those so-called safe havens in this article.
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Sunday, August 07, 2011
U.S. Economy Saved by a Trillion-Dollar Coin? / Currencies / Fiat Currency
Now that the "crisis" over the federal debt ceiling has been averted, we can leisurely explore two of the wackier proposals that emerged during the state of panic. Not surprisingly, the schemes involved the Federal Reserve and its ability to circumvent, not just standard accounting, but also the traditional divisions of political power. It's worth studying the episode carefully because we will probably see one or more of these "solutions" promoted as the only answer to another crisis in the not-too-distant future.
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Sunday, August 07, 2011
Quantitative Easing (QE) and the Debasement of the US Dollar / Currencies / Fiat Currency
The entire concept of keeping the economy functioning is based upon US dollar debasement via the creation of excess money and credit, which is accompanied by departments of government and Wall Street.
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Friday, August 05, 2011
Will GBP/USD 38.2% Key Support Level Last? / Currencies / British Pound
Following the late April high in GBP/USD the subsequent slip back found good support from a key 38.2% area, with recovery then triggered. But after recent resistance the key support could once more come under scrutiny.
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Friday, August 05, 2011
Will Japan Currency Intervention Work? / Currencies / Japanese Yen
The yen closed at 78.74 per dollar on March 17 following the earthquake and tsunami on March 11; a similar strengthening occurred with respect to the euro also at this time. The yen was trading around 82 yen per dollar prior to the natural disaster. The strengthening of the yen led to a massive coordinated intervention of central banks in currency markets by March 18. The intervention was successful in bringing about a depreciation of the yen and the yen/dollar exchange rate closed at 85.26 on April 6.Read full article... Read full article...
Thursday, August 04, 2011
The Dollar is the World’s Currency, but the Federal Reserve is America’s Central Bank! / Currencies / US Dollar
When considering the dollar’s status as the world’s reserve currency, I cannot help but recall the words of Jim Grant (of Grant’s Interest Rate Observer):
Read full article... Read full article...The dollar is the world’s currency but the Federal Reserve is America’s central bank! Period!
Thursday, August 04, 2011
Fed Given License To Debase U.S. Dollar Further, Gold Strong Breakout / Currencies / US Dollar
The US Federal Reserve has no monetary options whatsoever. They have been backed into the corner since 2007. It was coerced to reduce interest rates as the subprime mortgage crisis morphed into an absolute bond crisis, as the Jackass loudly stated during that fateful summer. The US bank leaders claimed it was contained. It was not. The USFed was backed into the corner in 2009, unable to raise interest rates from near 0% (the Zero Interest Rate Policy disease) and put into effect its propaganda theme of an Exit Strategy. The US bank leaders knew the longest period of time for the Fed Funds rate to stick at 0% was nine months, ensuring a future disaster. They saw it. They claimed a move toward normalcy. It did not come.
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Wednesday, August 03, 2011
The Story of Money versus Fiat Currency / Currencies / Fiat Currency
Welcome back to another edition of education webinars from the GoldSilver Knowledge Center - The Story of Money explains the history of money creation, how money is different from mere currency and what is fractional banking.
Also discussed is fiat currency, monetary debasement, the average monetary system life-cycle, a history of US debt versus the GDP, and the US debt projected out over 10 years.
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