StrikeEagle knows why, being Armstrong. I'd also like to know what method he uses to track global capital flows; last I read on the site, it was a third party provider. Armstrong's model requires accurate and reliable data, and if he does not have that, the whole thing is put to question. A single thing goes wrong and, like a complex ecosystem, everything else is affected.
https://www.armstrongeconomics.com/uncategorized/capital-flows-currency-flows/'..The capital flows you can obtain from OECD. You have to take the Capital Account and Current Account. We get the raw data that is faster. The Capital Account reflects capital inflows typically for investment, stocks, bonds, real estate, etc. The Current Account reflects the erroneously referred to trade numbers for it also includes outflows of interest and dividends...
Currency Flows are a more immediate indicator and the price reflects the flows and we can detect volume. Thus, a rising dollar and a declining euro will reflect the currency flows instantly and be confirmed by the Capital Flows as the data comes in.
This is how we were able to state publicly in 1998 that we saw $100 billion going into to Russia and $150 billion leaving. Hence, we warned Russia would collapse and that became the Long-Term Capital Management debacle.....
Keep in mind that many central banks gave us access to raw data so they too could see the world faster. Correlation studies show that the rise and fall of currencies reflect the final numbers of Capital Flows...'
https://www.armstrongeconomics.com/world-news/capital-flow/capital-flow-movements/'..Here is our capital flow map, which is proprietary. Even central banks are using this. We are collecting the raw data globally and will be providing a breakdown in the future of volume and sector analysis we pick up in the flows..'