He's been critical of
the Federal Reserve for having raised rates. One of the things President Trump said
apparently was that when he nominated
Powell he had expected him to be a
easier money guy. That he nominated him
thinking that he wouldn't have all these interest rate hikes and so he's disappointed that
his nominee is not being as easy when it
comes to monetary policy as what he had
hoped when he appointed him.
Aug 21, 2018
The Weak Dollar Policy
It should be obvious that Donald Trump has a weak dollar policy whether he wants to name it a weak dollar policy or not.
Jul 26, 2018
The Next Recession
It's not that
the inversion of the yield curve causes
the recession. It's that's that long
rates start to fall as investors start
to look beyond the expansion to the next
recession and they start pricing in the
next round of rate cuts.
So it's not that
the inversion causes the recession it
simply is a good indicator that a
recession is coming so you don't need an
inverted yield curve to get a recession
and we're gonna have a recession this
time without the yield curve inverting
given how little headway the Federal Reserve was
able to make in normalizing interest
rates.
Jul 23, 2018
The Catalyst For The US Dollar Drop
The catalyst today for the US Dollar sharp reversal was more tweets from President Trump where he is expressing anger not only at the Federal Reserve right or not only at the ECB and at the Bank of China because he is accusing both Europe and China of being currency manipulators of taking advantage of us by weakening their currencies.
This was
probably one of the biggest down days
for the US Dollar this year - across the
board weakness which is likely to
continue. Believe me we're gonna
have days that are gonna be much much
weaker than this, I believe later in the year and of
course next year and the year after that I think the dollar is gonna get
particularly beaten up.
Jul 20, 2018
U.S. Dollar: Forex Market Intervention Ahead?
Given Trump's accusations against Europe and China regarding currency manipulation I would not be surprised if the Treasury intervenes in forex markets to drive the dollar lower. The dollar's demise will happen on its own anyway, so intervention will only accelerate the process.
Jul 19, 2018
Gold, Gold Stocks and Inflation
The
price of gold is falling,
this is the new low for the price of
gold this year.
Gold stocks are continuing to
hold up very well in the face of the
decline in the price of gold. Gold stocks
are not making a new low for the year at
least not yet and though they are down
today they are not down nearly as much
as you would assume with a 10-12 dollar
drop in the price of gold.
I still think that traders have this wrong.
They're still looking at the the trade
war as somehow being dollar positive. It's
dollar negative. That is impacting gold.
They are dismissing the increasing
inflation numbers that we're getting as
transitory because they think the Fed is
gonna hike rates more to fight the
inflation which is going to be good for
the US Dollar and bad for Gold.
The reality
is they're not gonna fight the inflation
they're gonna surrender. Inflation is
going to win because if they fight
inflation they cause the worst financial
crisis since 2008 and they don't want to do that.
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