However dont confuse dollar strength being good with "not painful" as we certainly will have to experience pain as the #1 debtor nation in the world. The idea that inflation transfers wealth from savers to debtors is true to some degree, but deflation transfers it from debtors, so someone is going to lose either way.Being that we have a balance sheet recession, the most productive thing would be in fact to hike rates, get inflows of capital, and THEN start lending once balance sheets are healthy
Globally higher interest rates encourages capital to concentrate into the US. Higher interest rates is actually inflationary though because with higher interest rates payments, the government goes into debt and since they issue so many bonds in doing so, they have greater incentive to inflate their payments away. The banks have to lend with higher interest rates to get the savers (their liability) off the books, and the government has the same motivation and they are on the same page.
Bernanke is smart when it comes to an "in theory" domestic economy, but it has no basis in reality in a global economy. More exports and debasement of our currency just accelerates the flow of wealth out of this country. Higher interest rates and dollar strength are GOOD. Even though domestically they may discourage borrowing (although that also is more 'in theory' then reality as the bankers have more incentive to lend more when interest rates are high to get savers $ off the books)...
They're going to raise the debt ceiling as Congress gives in to the threats of Geithner, Moody's, and the rest of the Wallstreet financial terrorists. And there will be QE3 because people will begin to panic as the Dow continues to plummet from now to August.
THE BLACK HORSEMAN COMETH -- "They will pay their days wages for a morsel of wheat and barley."
does anyone really want to trade their silver for some other currency? If there is world chaos do you think I would trade a hotdog for a silver coin? Please folks remember WW2, folks in France were starving in the streets, they piled wagons with folks that just starved to death. Folks would give anything for something to eat.
wow! are implying that US policies induce an exchange between inflated equities and deflated currencies? hahaha. WHO ARE NOT AWARE OF THIS?? Five years ago when I was travelling around the world I could use USD ANYWHERE... now they will not accept it!! They want EUR instead... the EUr is sick too (thats another discussion) but it should be bloodu obvious that the USD, even in small beach shops in the Phillipines, are WORTHLESS!!! sorry bud.......
@anon3560 Deflection again with no substance. If you think rates cannot be raised nor will they is once again a sign of ignorance. Would you prefer Money printing with high rates? I mean how stupid is your so called rebuttal? Rates can and will be raised when it is appropriate. Not a hard concept for anyone to understand. Apparently for you it is.
@anon3560 These are FACTS! Only Bullshit here is you thinking the World will end! This notion is laughable. But it makes sense to you because you do not understand what is going on and you do not have the knowledge for a rebuttal. You try to deflect your own ignorance. 4 years later and you still believe the USD will collapse! Stick to your day job and leave economics to people who know and understand what is required. Either rebut or don't bother me with your nonsense. Period!
@anon3560 Listen my illiterate friend. DX being in a range is not statistic. Emerging markets requiring a huge amount commodities Gold Dollar no correlation are not Statistic. That the EUR did not exist in the 70 and 80s is not a statistic. China printing their total money supply once every 40 months is not a statistic. China flooding the world with their savings pushing rates down is not a statistic. Gold produces nothing Printing money does not "cause" inflation are not a statistic. Wake up!
Currency debasement is great for America, theres no need to worry things will get much better because Ben Bernanke has alot of tools that you are not aware of . Once the dollar is down to 62 you will have to see a rebirth in the housing market bubble. Banks will be lending money and financing all kinds of construction projects etc. Its not the end of the world and its only a repeat of a cyclical process. Watch how they are going to dillute the debt by coming up with a new debt reduction plan.
@desertgreek i admire your optimism, although i do not agree with it. dollar down to 62 means very rapid inflation. and look at all the things the US has to import because it has exported its manufacturing base to china. everything will become so expensive with a weak dollar. when the dollar ceases to be the world reserve currency, it's curtains for the US of A - and believe me it's coming. Google 'IMF Wants to Replace Dollar As World Currency'... The IMF makes the rules. End of story.
Not necessarily very rapid inflation on everything, look at commodities some have doubles many have not, The folks in China will have to eventually pay there folks more and have some sort of enviromental regulations, they will be forced to develope a middle class, The playing field will eventually sort itself out. Keep in mind the real problem is 7 billion people on a planet with limited resources. Expect natural catastrophes,disease,wars etc, population control to sort things
@desertgreek sounds like rapid inflation to me... increase in money supply = lower dollar = inflation. that's economics 101. inflation is a lot higher than the 'core inflation' that the fed talks about, which excludes food and energy. there is a lag between quantitative easing and inflation. the real effects of all that money printing are yet to be felt.
the question I have is....to what degree do margin differences between commodites and the S&P have an effect on these graphs? What is the current margin requirement for stocks vs corn, or wheat, etc - note what happened to silver when the margin requirement was raised. I'm not disputing the point of your video but I think margin rates are overlooked as a variable in price movements..thanks for posting this btw.
Hello, on the video I can not see what they are comparing to dollar to. you stated relative comparison, could you let me know comparing it to what? Thank you.
But don't people buy into the commodities market more when the economy is poor? What if the commodities are going up because there is a greater demand for them? Is the overall volume the same? If so, that would prove your point.
I think printing money is the governments way of increasing tariffs. They cant increase tariffs due to the known political ramifications, but they can print money with no one the wiser.
The wealth effect works great for those who have attained some, but for those of us who aspire to break into the 6 figure income bracket....GOOD LUCK! The price just keeps going up. Too high I fear.
QE2 was an abject failure? Depends on what you think their objective was with QE. If you think they're doing it for your benefit, then I think you're premise is wrong. If you think that their goal is to destroy the dollar to bring in a new currency, then it's starting to look pretty successful. It says right there on the IMF website that they want to get rid of the dollar as the world reserve currency and bring in a new global one.
So true Karl dollar debasement is not linear vs other things. All the debasement that occurred from mid 1980's till 2000 didn't show up in gold as monies when into real estate and stocks. As real estate and stocks became unattractive gold began to compensate for all the money printing during those 15 years. There can be several years of lag in a correlation.
KD What happened to the article you wrote on your blog titled "listen to the hucksters, lose your ass?" Your opinion on Gold and silver was very negative. Have you changed your mind?
I always suspected the recent stock market gains were "fake" (not based on improving economic conditions), but your video makes it clear how the fed and the current administration pulled it off.
It failed in Japan, what's interesting about this is people in the US told them not to do it:-) all these ass hats know this whole global debt based, banker criminal controlled monetary system which has led to corrupt, morally financially and spiritually bankrupt political systems is just on big ass scam. The US goes broke on average about ever 29 years. The whole system is just a bunch of absolute nonsense.
@anon3560 Ok Simply Disprove any of these facts. But Only using Objective Facts! Not with subjective drama and fear. You are more than welcome to rebuttal!
12. Let's say that the Dollar index increased in Value dramatically Over night. Would that not be bad for exports? Would that not make our goods and services too expensive for the world to consume? How would that fix our unemployment problem? It wouldn't it would actually make it worse! Should we have 35% unemployment and growing along with 35% lower wages but a stronger dollar, while commodity prices remain high because of demand from emerging markets? I think Not!
11. Gold Aug 2005 Gold $425. Same time DX (dollar index) .89.
May 1 2011 Gold $1537 DX. .75 Hm....
Again there is no correlation! Sorry!
Japan is in debt 200% of their GDP US is about 90%. USD / JPY (Yen) .81 hm... USD is valued 19% less? Japan is in more debt than the US but their currency is valued more? Did they not just print a boat load? Yup! Again Debt to GDP does not correlate to purchasing power of a countries currency.
@bozeman14 "Japan's debt is mainly held by the Japanese"
If the US bought our own debt and went 200% of GDP that would be ok? I am not sure but I think a large are of Japan just Turned into a waste land sadly. Do you think that it is a positive for the Yen going forward? Last question is the Yen the World reserve currency?
@bozeman14 What does my channel have to do with the facts? Nothing. You claimed in your earlier statement that JPY is trading higher because they own their own debt and that 200% of GDP was ok because of it. Now you are telling because we are buying our own short term debt that we should trade lower? What the hell are you talking about flip flopper? As usual Idiots like you have no substance behind your flash card posts. Because you are ignorant. Say something with substance or stop posting me.
@CitizenNumber Try to remember that the DX is an index against a basket of other currencies....Nothing stopping those other currencies from printing money also...Meaning that the DX would not fall to the true extent that it should. Example US prints, while all other countries print exactly the same amount. The DX would not move, yet the prices of goods/services would increase greatly.....FYI...the DX is weighted quite heavily towards the EUR....You should probably find a better point to argue.
@2leet2cheet So when everyone on the planet says the dollar has fallen or risen they do not refer to the DX? Does Karl in this very Video not referring to the DX? What are you talking about? You are one of those people that have absolutely no point to make but speaks anyway. My point still stands There is no correlation.
@CitizenNumber Let me break this down so even you can understand.The DX/DXY/Dixxy is an INDEX. This index is based on a basket of fiat currencies. Meaning, the US printing money is not the only variable in the equation, hence trying to draw conclusions about price movements in commodities is of no value.
10 If we were to do the same examples Oil / DX in July 2007 Oil was at $147 and the DX as at .72 fast forward to Jan 2009 Oil $36 and DX was at .89. So what gives? Hm.... What is a correct price for oi? $147? or $36?
Oct 2006 SPY 1586 same time DX .78
March 2008 SPY 688 Same time DX .71
Conclusion does a .07 drop in DX cause a 900 point drop in SPY? No
Does a .17 rise in DX cause Oil to Drop $111 or a loss of 75%? No
There is no real correlation between the two. Sorry!
GDP = Consumption + Investment + Government + Net Exports. Their plan has been to increase government spending all the while devaluing dollar at the same time. Their purpose for this is to boost exports regardless of other negative impacts mentioned here. This is why you see the stock market go up and GDP go up all the while unemployment remains high. It is an economic trap in both fiscal and monetary policy. Circular flows and magic equations dont work when corruption takes over. My .02 cents..
6. If we did not print would we have fallen into a deflationary spiral? Yes prices fall but so would your income.
7. Has Europe's Austerity measures done better then the US? No in fact their 2 year bonds are at 10% 16% even 25%. Is that conducive to job growth? No in fact it is a big negetive.
8. Population growth is in its self deflationary. US increased the population by 10 million since 2007.
9. Commodities have been driven up largely due to emerging markets demand. Not DX debasement.
I would like to point out a few things about this video. 1. if we pull this chart out back to 1970's the DX is range bound from .74 to 1.0. With some spike to 1.20.
2. Debasement of currency is difficult when credit is contracting.
3. Think of this would we be printing if we were not contracting the money supply?
4. If and when inflation kicks in can we not raise rates? Yes we are at zero.
5.Can we not electronically destroy QE as our short term bonds matures? Yes we can.
So the stock market went up but in real terms probably not, yet you are taxed on the dollar value of the gain. If your purchasing power of stocks remains flat yet you have a gain, when you sell and pay taxes, the true effect is a loss of your money.
Thus no true gain can be claimed, rather you have suffered a loss on your stocks.
Thanks Karl , always to the point and thanks again for helping us make the right choices a few years back. So now that they halved our savings ( stole our money) We arent going to play along anymore .Well we already stopped 2 years ago.
Pretty stupid to inflat prices when folks is broke and gubmint has a blown budget. Bailing out the stock holders was the stupidist thing, such a waste. Markets are all fake and worthless. Too bad deflation is not allowed, it would help solve many issues.
OSAMA DID IT AND NOW HE IS DEAD AND WE ARE FINE :) JUST GO BACK TO SLEEP AND WHEN YOU WAKE UP EVERYTHING WILL BE EVEN BETTER. GOOD NITE........................
Hyperinflation is literally just around the the proverbial corner. The S is tetting ready to HTF! Nothing says riots in the streets, WROL, and Marshal Law, like people starting to get hungry. Mary, Mary, quite contrary, how's your garden grow. Hint, hint.
But someone needs to explain that to my 250% current gain (in other words, preservation of purchasing power). And if they destroy the currency... oh, well.
However dont confuse dollar strength being good with "not painful" as we certainly will have to experience pain as the #1 debtor nation in the world. The idea that inflation transfers wealth from savers to debtors is true to some degree, but deflation transfers it from debtors, so someone is going to lose either way.Being that we have a balance sheet recession, the most productive thing would be in fact to hike rates, get inflows of capital, and THEN start lending once balance sheets are healthy
secretbonus 7 months ago
Globally higher interest rates encourages capital to concentrate into the US. Higher interest rates is actually inflationary though because with higher interest rates payments, the government goes into debt and since they issue so many bonds in doing so, they have greater incentive to inflate their payments away. The banks have to lend with higher interest rates to get the savers (their liability) off the books, and the government has the same motivation and they are on the same page.
secretbonus 7 months ago
Bernanke is smart when it comes to an "in theory" domestic economy, but it has no basis in reality in a global economy. More exports and debasement of our currency just accelerates the flow of wealth out of this country. Higher interest rates and dollar strength are GOOD. Even though domestically they may discourage borrowing (although that also is more 'in theory' then reality as the bankers have more incentive to lend more when interest rates are high to get savers $ off the books)...
secretbonus 7 months ago
Hey goofball. When are you shutting down that bi polar hybrid rag ticker forum? OMG it's math.
dowjones20000 7 months ago
What are your views on speculation in the oil market?
DefenceSpeech 8 months ago
They're going to raise the debt ceiling as Congress gives in to the threats of Geithner, Moody's, and the rest of the Wallstreet financial terrorists. And there will be QE3 because people will begin to panic as the Dow continues to plummet from now to August.
THE BLACK HORSEMAN COMETH -- "They will pay their days wages for a morsel of wheat and barley."
seanlaca 9 months ago
Excellent video & explanation, but MOST people will never understand this nor will they know what to do to stave off the US $'s collapse. :(
cresidue 9 months ago
does anyone really want to trade their silver for some other currency? If there is world chaos do you think I would trade a hotdog for a silver coin? Please folks remember WW2, folks in France were starving in the streets, they piled wagons with folks that just starved to death. Folks would give anything for something to eat.
desertgreek 9 months ago
STASH RICE,BEANS AND DRIED FOOD NOW!!! WTF YALL WAITING FOR!!!?
Lepiratepoulpe 9 months ago
@Lepiratepoulpe allways have enough to get thru a couple of months, but then what, if you need more than that its over for any quality of life.
desertgreek 9 months ago
wow! are implying that US policies induce an exchange between inflated equities and deflated currencies? hahaha. WHO ARE NOT AWARE OF THIS?? Five years ago when I was travelling around the world I could use USD ANYWHERE... now they will not accept it!! They want EUR instead... the EUr is sick too (thats another discussion) but it should be bloodu obvious that the USD, even in small beach shops in the Phillipines, are WORTHLESS!!! sorry bud.......
DiggingNorway 9 months ago
@anon3560 Deflection again with no substance. If you think rates cannot be raised nor will they is once again a sign of ignorance. Would you prefer Money printing with high rates? I mean how stupid is your so called rebuttal? Rates can and will be raised when it is appropriate. Not a hard concept for anyone to understand. Apparently for you it is.
CitizenNumber 9 months ago
@anon3560 These are FACTS! Only Bullshit here is you thinking the World will end! This notion is laughable. But it makes sense to you because you do not understand what is going on and you do not have the knowledge for a rebuttal. You try to deflect your own ignorance. 4 years later and you still believe the USD will collapse! Stick to your day job and leave economics to people who know and understand what is required. Either rebut or don't bother me with your nonsense. Period!
CitizenNumber 9 months ago
@anon3560 Listen my illiterate friend. DX being in a range is not statistic. Emerging markets requiring a huge amount commodities Gold Dollar no correlation are not Statistic. That the EUR did not exist in the 70 and 80s is not a statistic. China printing their total money supply once every 40 months is not a statistic. China flooding the world with their savings pushing rates down is not a statistic. Gold produces nothing Printing money does not "cause" inflation are not a statistic. Wake up!
CitizenNumber 9 months ago
So people that aren't buying stocks with "dollars" are making a shit ton of money?
squirreljester2 9 months ago
Currency debasement is great for America, theres no need to worry things will get much better because Ben Bernanke has alot of tools that you are not aware of . Once the dollar is down to 62 you will have to see a rebirth in the housing market bubble. Banks will be lending money and financing all kinds of construction projects etc. Its not the end of the world and its only a repeat of a cyclical process. Watch how they are going to dillute the debt by coming up with a new debt reduction plan.
desertgreek 9 months ago
@desertgreek I hope the bernank has a real polish marksman pistol with a full cylinder and uses it as his next tool.
bastardchildofmary 9 months ago
@bastardchildofmary It doesn't matter, look at the men that were there before him, no difference whatsoever.
desertgreek 9 months ago
@desertgreek True, but I would like to see it anyway, maybe even live feed on youtube!!
bastardchildofmary 9 months ago
@desertgreek Yeah, good luck with that!!
vambo13257 9 months ago
@vambo13257 I'm in Las Vegas Nevada, we know how luck usually goes.......
desertgreek 9 months ago
@desertgreek i admire your optimism, although i do not agree with it. dollar down to 62 means very rapid inflation. and look at all the things the US has to import because it has exported its manufacturing base to china. everything will become so expensive with a weak dollar. when the dollar ceases to be the world reserve currency, it's curtains for the US of A - and believe me it's coming. Google 'IMF Wants to Replace Dollar As World Currency'... The IMF makes the rules. End of story.
robertplant634 9 months ago
@robertplant634
Not necessarily very rapid inflation on everything, look at commodities some have doubles many have not, The folks in China will have to eventually pay there folks more and have some sort of enviromental regulations, they will be forced to develope a middle class, The playing field will eventually sort itself out. Keep in mind the real problem is 7 billion people on a planet with limited resources. Expect natural catastrophes,disease,wars etc, population control to sort things
desertgreek 9 months ago
@desertgreek sounds like rapid inflation to me... increase in money supply = lower dollar = inflation. that's economics 101. inflation is a lot higher than the 'core inflation' that the fed talks about, which excludes food and energy. there is a lag between quantitative easing and inflation. the real effects of all that money printing are yet to be felt.
robertplant634 9 months ago
the question I have is....to what degree do margin differences between commodites and the S&P have an effect on these graphs? What is the current margin requirement for stocks vs corn, or wheat, etc - note what happened to silver when the margin requirement was raised. I'm not disputing the point of your video but I think margin rates are overlooked as a variable in price movements..thanks for posting this btw.
beltane3 9 months ago
Hello, on the video I can not see what they are comparing to dollar to. you stated relative comparison, could you let me know comparing it to what? Thank you.
Thewizzardof9 9 months ago
Quantitative Easing,...Brought to you by the makers of K Y Jelly......Feel the ease.
pfcwar5150 9 months ago 19
@pfcwar5150 KY? I don't think so, its being done to us dry!
bastardchildofmary 6 months ago
But don't people buy into the commodities market more when the economy is poor? What if the commodities are going up because there is a greater demand for them? Is the overall volume the same? If so, that would prove your point.
TheAtheistPaladin 9 months ago
I think printing money is the governments way of increasing tariffs. They cant increase tariffs due to the known political ramifications, but they can print money with no one the wiser.
2leet2cheet 9 months ago
The wealth effect works great for those who have attained some, but for those of us who aspire to break into the 6 figure income bracket....GOOD LUCK! The price just keeps going up. Too high I fear.
ramjamflimflam 9 months ago
QE2 was an abject failure? Depends on what you think their objective was with QE. If you think they're doing it for your benefit, then I think you're premise is wrong. If you think that their goal is to destroy the dollar to bring in a new currency, then it's starting to look pretty successful. It says right there on the IMF website that they want to get rid of the dollar as the world reserve currency and bring in a new global one.
robertplant634 9 months ago 3
@robertplant634 Exactly.
PrudenceWright 9 months ago
@PrudenceWright good to see there are some people that get it.
robertplant634 9 months ago
So true Karl dollar debasement is not linear vs other things. All the debasement that occurred from mid 1980's till 2000 didn't show up in gold as monies when into real estate and stocks. As real estate and stocks became unattractive gold began to compensate for all the money printing during those 15 years. There can be several years of lag in a correlation.
bunsh1ch1 9 months ago
KD What happened to the article you wrote on your blog titled "listen to the hucksters, lose your ass?" Your opinion on Gold and silver was very negative. Have you changed your mind?
PARADIGMSHIFT2009 9 months ago
Good video. Very depressing, but great analysis.
I always suspected the recent stock market gains were "fake" (not based on improving economic conditions), but your video makes it clear how the fed and the current administration pulled it off.
wilsomi4 9 months ago
What commodities will hold their value in this inflation? that can be exchanged or bartered later?
iUbookz 9 months ago
@iUbookz Silver, gold, oil, copper :D These will hold their value or increase dramatically...
Food too...
TrunkMonkey3000 9 months ago
It failed in Japan, what's interesting about this is people in the US told them not to do it:-) all these ass hats know this whole global debt based, banker criminal controlled monetary system which has led to corrupt, morally financially and spiritually bankrupt political systems is just on big ass scam. The US goes broke on average about ever 29 years. The whole system is just a bunch of absolute nonsense.
UU361 9 months ago
Im Canadian, I buy S&P 500 Index Fund (CAD-Hedged) ETF. It's going up for me :)
Ignare 9 months ago
I'd call this video: How YOU/WE are paying for the bailouts.
nesNYC 9 months ago
Thanks Karl.
fal2grace 9 months ago
@anon3560 Ok Simply Disprove any of these facts. But Only using Objective Facts! Not with subjective drama and fear. You are more than welcome to rebuttal!
CitizenNumber 9 months ago
Thanks KD, very informing but very sad!!
ChancetheCanine 9 months ago
12. Let's say that the Dollar index increased in Value dramatically Over night. Would that not be bad for exports? Would that not make our goods and services too expensive for the world to consume? How would that fix our unemployment problem? It wouldn't it would actually make it worse! Should we have 35% unemployment and growing along with 35% lower wages but a stronger dollar, while commodity prices remain high because of demand from emerging markets? I think Not!
CitizenNumber 9 months ago
11. Gold Aug 2005 Gold $425. Same time DX (dollar index) .89.
May 1 2011 Gold $1537 DX. .75 Hm....
Again there is no correlation! Sorry!
Japan is in debt 200% of their GDP US is about 90%. USD / JPY (Yen) .81 hm... USD is valued 19% less? Japan is in more debt than the US but their currency is valued more? Did they not just print a boat load? Yup! Again Debt to GDP does not correlate to purchasing power of a countries currency.
CitizenNumber 9 months ago
@CitizenNumber japan's debt is mainly held by the japanese and they have trade surpluses because they didn't off-shore their manufacturing base.
so, no valid comparison.
bozeman14 9 months ago
@bozeman14 "Japan's debt is mainly held by the Japanese"
If the US bought our own debt and went 200% of GDP that would be ok? I am not sure but I think a large are of Japan just Turned into a waste land sadly. Do you think that it is a positive for the Yen going forward? Last question is the Yen the World reserve currency?
CitizenNumber 9 months ago
@CitizenNumber hello - qe2 was the fed buying our own debt. where are trade surplus or our current account surpulus being addresssed
japan is a waste land because of fukushima and government lies both in japan and the us.
by the way , i checked out your channel - you are a sock puppet. .
everyone check out this fraud channel
bozeman14 9 months ago
@bozeman14 What does my channel have to do with the facts? Nothing. You claimed in your earlier statement that JPY is trading higher because they own their own debt and that 200% of GDP was ok because of it. Now you are telling because we are buying our own short term debt that we should trade lower? What the hell are you talking about flip flopper? As usual Idiots like you have no substance behind your flash card posts. Because you are ignorant. Say something with substance or stop posting me.
CitizenNumber 9 months ago
Comment removed
2leet2cheet 9 months ago
@CitizenNumber Try to remember that the DX is an index against a basket of other currencies....Nothing stopping those other currencies from printing money also...Meaning that the DX would not fall to the true extent that it should. Example US prints, while all other countries print exactly the same amount. The DX would not move, yet the prices of goods/services would increase greatly.....FYI...the DX is weighted quite heavily towards the EUR....You should probably find a better point to argue.
2leet2cheet 9 months ago
@2leet2cheet So when everyone on the planet says the dollar has fallen or risen they do not refer to the DX? Does Karl in this very Video not referring to the DX? What are you talking about? You are one of those people that have absolutely no point to make but speaks anyway. My point still stands There is no correlation.
CitizenNumber 9 months ago
@CitizenNumber Let me break this down so even you can understand.The DX/DXY/Dixxy is an INDEX. This index is based on a basket of fiat currencies. Meaning, the US printing money is not the only variable in the equation, hence trying to draw conclusions about price movements in commodities is of no value.
2leet2cheet 9 months ago 3
10 If we were to do the same examples Oil / DX in July 2007 Oil was at $147 and the DX as at .72 fast forward to Jan 2009 Oil $36 and DX was at .89. So what gives? Hm.... What is a correct price for oi? $147? or $36?
Oct 2006 SPY 1586 same time DX .78
March 2008 SPY 688 Same time DX .71
Conclusion does a .07 drop in DX cause a 900 point drop in SPY? No
Does a .17 rise in DX cause Oil to Drop $111 or a loss of 75%? No
There is no real correlation between the two. Sorry!
CitizenNumber 9 months ago
GDP = Consumption + Investment + Government + Net Exports. Their plan has been to increase government spending all the while devaluing dollar at the same time. Their purpose for this is to boost exports regardless of other negative impacts mentioned here. This is why you see the stock market go up and GDP go up all the while unemployment remains high. It is an economic trap in both fiscal and monetary policy. Circular flows and magic equations dont work when corruption takes over. My .02 cents..
dx11101 9 months ago
6. If we did not print would we have fallen into a deflationary spiral? Yes prices fall but so would your income.
7. Has Europe's Austerity measures done better then the US? No in fact their 2 year bonds are at 10% 16% even 25%. Is that conducive to job growth? No in fact it is a big negetive.
8. Population growth is in its self deflationary. US increased the population by 10 million since 2007.
9. Commodities have been driven up largely due to emerging markets demand. Not DX debasement.
CitizenNumber 9 months ago
I would like to point out a few things about this video. 1. if we pull this chart out back to 1970's the DX is range bound from .74 to 1.0. With some spike to 1.20.
2. Debasement of currency is difficult when credit is contracting.
3. Think of this would we be printing if we were not contracting the money supply?
4. If and when inflation kicks in can we not raise rates? Yes we are at zero.
5.Can we not electronically destroy QE as our short term bonds matures? Yes we can.
CitizenNumber 9 months ago
So the stock market went up but in real terms probably not, yet you are taxed on the dollar value of the gain. If your purchasing power of stocks remains flat yet you have a gain, when you sell and pay taxes, the true effect is a loss of your money.
Thus no true gain can be claimed, rather you have suffered a loss on your stocks.
DERBENSKI 9 months ago
grazie Karl! great explanation
PArticenens 9 months ago
bernanke and geitner disliked this video
Unkn0wnGuy 9 months ago 40
Telling it as it is... Thumbs up.
SteelCityBoilermaker 9 months ago
Thanks Karl , always to the point and thanks again for helping us make the right choices a few years back. So now that they halved our savings ( stole our money) We arent going to play along anymore .Well we already stopped 2 years ago.
tiroler537 9 months ago
Good stuff, thank you!
Louloe 9 months ago
Record NZD/USD and USD/CHF where will it end
jizzleone1 9 months ago
Pretty stupid to inflat prices when folks is broke and gubmint has a blown budget. Bailing out the stock holders was the stupidist thing, such a waste. Markets are all fake and worthless. Too bad deflation is not allowed, it would help solve many issues.
scanlonized 9 months ago
What software are you using to do charting ?
jizzleone1 9 months ago
The money printing will not stop until everything is worthless.
jameskunstler 9 months ago
@jameskunstler
Couldn't agree more. It is certainly a clusterf*** nation, but you probably already know that, I'm sure. hehehe
Cheers!
tyronebiggums3 9 months ago
does anyone even believe bernanke or geithner? the government lies, the politicians lie, the fbi, cia and military.. it is all one big lie.
thanks for telling the truth karl.
navtel 9 months ago
KD, have you changed your mind about gold (and silver) yet?
magichandpuppet 9 months ago
This has been flagged as spam show
@magichandpuppet No way. Too proud.
helpendthefed 9 months ago
Thanks for providing real news, which is our now real world that we live in.
slhines7 9 months ago
Silver and Gold. Preserve your wealth.
alphabeets 9 months ago
Depressing - thanks.
hac5x3 9 months ago
silver and gold :D
ILovelisanova 9 months ago
OSAMA DID IT AND NOW HE IS DEAD AND WE ARE FINE :) JUST GO BACK TO SLEEP AND WHEN YOU WAKE UP EVERYTHING WILL BE EVEN BETTER. GOOD NITE........................
TheKisa93 9 months ago
Very informative. Thanks for posting. Helicopter Ben at work.
mcgrawtim123 9 months ago
Hyperinflation is literally just around the the proverbial corner. The S is tetting ready to HTF! Nothing says riots in the streets, WROL, and Marshal Law, like people starting to get hungry. Mary, Mary, quite contrary, how's your garden grow. Hint, hint.
62636263c 9 months ago
Is it just me or do I see an "Inverted head and shoulders" pattern with the head on high volume on 29 may ?
Could this mean a medium term trend reversal if the neck line hold?
Time will tell I guess :)
frenchy137 9 months ago
i know what you know, but i have not been able to show/ convince anyone else.
i am damned tired.
bozeman14 9 months ago
Really interesting and informative. Thank you so much for posting this.
LisaJ4Liberty 9 months ago 3
Purchasing power... The family and I went through a 1000.00 in no time flat this weekend. The dollar sure doesn't spend like it used too.
Thanks for sharing!
icebreaker7 9 months ago
u explain the negative affects of the fed but u dont say anything on how to fix the problem
put your assets in things that are growing more than inflation, silver, gold, palladium, wheat, corn, sugar, etc
solojam 9 months ago
Great video, I wish everybody would pay attention to this problem. But then again when everybody catches on we will be in hyperinflation
newbeflipflop 9 months ago
Great analysis, Karl.
You've convinced me yet again... time to load up on more Gold and Silver.
Cheers!
tyronebiggums3 9 months ago
@tyronebiggums3 BUT I thought Denninger does not believe in gold/silver to preserve wealth?
MamaOkie 9 months ago
@MamaOkie
Hmmmmm... I think you're correct.
But someone needs to explain that to my 250% current gain (in other words, preservation of purchasing power). And if they destroy the currency... oh, well.
tyronebiggums3 9 months ago
@tyronebiggums3 Well that is what I keep thinking, so why is Denninger against purchasing PMS? I wonder.
MamaOkie 9 months ago
denniger tell us something we dont know.
solojam 9 months ago
As always, thanks for the analysis; both in video form, and at the market-ticker.
Eincrou 9 months ago