It doesn't make sense. But it is a fact. The value of dollars raised by foreign corporations via bonds that have to repaid in dollars is $10 trillion since 2008.
The Hong Kong dollar is pegged to the US dollar. The Chinese Yuan has been more or less pegged the US dollar. This policy enabled China to force all savings in China into 0 profit manufacturing. Read Michael Pettis to understand the macro economics.
What you think is irrelevant. These are the facts.
The Hong Kong dollar is pegged to the US dollar. The Chinese Yuan has been more or less pegged the US dollar. This policy enabled China to force all savings in China into 0 profit manufacturing. Read Michael Pettis to understand the macro economics.
What you think is irrelevant. These are the facts.
...the flight of capital to the US would send Bitcoin to the moon in the process. I think this debunks your idea that gold and Bitcoin can be linked at all completely. Capital flight to US assets or USD will send Bitcoin skyrocketing. Bitcoin is the Rolls Royce of capital flight.
Indeed this is what is predicted for 2017 to 2020ish. But first there will be an initial asset-wide reaction to a global liquidity squeeze when the interest rates change direction. Then the capital flight movement (from the liquidity crisis affected economies) leads to a concentration in USD, US stocks, Bitcoin, and gold and other tangible private assets will upward spiral (positive feedback loop effect) into to a bubble stampede into them. Thus the V bottom slingshot prediction.
And gold will be also be going up as a safe haven flight asset:
QUESTION: Mr. Armstrong; At the WEC you said stay in cash not debt. You also said the stock market would dive in the first quarter the turn back up. I have followed the reversals all the way up and caught probably 80% of the move. Thank you. My question is simply are knocking of heavens door? Is it time to breakout or are we consolidating? I have found the Socrates preview for attendees a real asset for it has no agenda but forecasting.
ANSWER: Well put. Stay in mostly cash, far away from fixed income. Yes, we are knocking on heavens door as they say in the Dow. The GMW has done a pretty good job for this rally. The Daily Bullish Reversal in the Dow that is important stands at 18137.50. We reached 18167,63 intraday, but could not close about that Reversal. It is possible to break through to new highs on the cash index. However, to do so we need that daily closing just to test the former high established last May at 18351.36. We need to exceed that high here in 2016 to imply we will continue to push higher.
Nevertheless, it is never wise to ANTICIPATE such breakouts because that is how people buy the high and lose a fortune. A daily close above 18010 will help warn that we may press high for a day. Keep in mind we are at the threshold in many markets. If we press higher after April, then we can see an early rally into June/July. But lift-off still appears to be next year in almost everything.
The issue seems to be CONFIDENCE. That must crack, and when it does, this will be confirmed by the breakout in everything.
ANSWER: Well put. Stay in mostly cash, far away from fixed income. Yes, we are knocking on heavens door as they say in the Dow. The GMW has done a pretty good job for this rally. The Daily Bullish Reversal in the Dow that is important stands at 18137.50. We reached 18167,63 intraday, but could not close about that Reversal. It is possible to break through to new highs on the cash index. However, to do so we need that daily closing just to test the former high established last May at 18351.36. We need to exceed that high here in 2016 to imply we will continue to push higher.
Nevertheless, it is never wise to ANTICIPATE such breakouts because that is how people buy the high and lose a fortune. A daily close above 18010 will help warn that we may press high for a day. Keep in mind we are at the threshold in many markets. If we press higher after April, then we can see an early rally into June/July. But lift-off still appears to be next year in almost everything.
The issue seems to be CONFIDENCE. That must crack, and when it does, this will be confirmed by the breakout in everything.
Ethereum still looks massively inflated. I would not feel comfortable holding any amount for longer than a few days.
It has been massively inflated since Day 1 of the ICO. That hasn't been relevant though.
I mean, it's obvious why, just military dominance.
There's a lot of truth in that. London UK became the financial center of the world thanks in large part to the British Empire. And with American geopolitical predominance, history has repeated: trillions upon trillions of greenback-equivalent just keep knocking of the door of New York to be let into the American capital markets.
And here's a fun fact: when the sun sets on the geopolitically-predominant power, two aftereffects persist: 1) world-class standing in the capital markets; 2) a bloated military budget.
The shift of the military and financial capital of the world from the USA to China+Asia won't be complete until 2032.95 (thus isn't relevant to our current discussion):
https://www.google.com/search?q=site%3Aarmstrongeconomics.com+rise+of+China
Quote from: https://www.armstrongeconomics.com/uncategorized/china-moving-to-replace-usa-as-financial-capitol-of-world/
