US Dollar: A Bear Market Rally

The big story continues to be the bear market rally that has been going on in the US dollar the US Dollar Index today closed above 93 the low this year was just above 88 so we've risen about 5% so far in the US Dollar Index from the lows.

Is Gold Being Manipulated?

Federal Reserve: Shrinking The Balance Will Have Consequences

When Alan Greenspan took over the Federal Reserve in 1987, its balance sheet was at about $200 billion. A few years ago, it reached $4.5 trillion. Shrinking it will have consequences.

Related trading instruments: 

• SPDR S&P 500 Index ETF (SPY)
• SPDR Dow Jones Industrial Average ETF (DIA)
• iShares Russell 2000 Index ETF (IWM)
• Nasdaq 100 Index ETF (QQQ)

Inflation: The Danger To Bondholders

How comfortable are bondholders going be when inflation is above 2 percent when they're barely earning 2 percent on their bonds now? 

I mean you're not even getting 3 percent on a 10-year Treasury right now, you're getting around 2.95.

Well, if inflation is above, let's say inflation is two and a half, well you're getting two and a half percent inflation if your yield is only 2.95 you're not even getting 50 basis points. But of course after taxes you're losing money because the Treasury bond yield is not tax-free. The federal government still taxes you on the money you earn on Treasuries, so after taxes if you're getting a two point nine five percent coupon if there's two and a half percent inflation you are losing money.