henrymakow.com — Feb 5, 2018
“I’m actually very sad because if the FED doesn’t do an about-face on its policy it’s going to cause the economic collapse that the Protocols talk about. I mean this will begin a dark time in human history.”
Disclaimer – This looks like a normal correction to me but given how the Fed feels about Trump, and the world feels about the US dollar, Chris may be right.
Directly below, in Part II, Chris goes into more detail and gives his recommendations.
by Chris Pirnak — (henrymakow.com)
This is not normal profit taking.
I said the stocks would continue to run up as long as long-term Treasury yields remained low. This meant that there was enough quantitative easing worldwide to buy up enough of the world assets including equities to keep prices elevated.
That also meant that the short end of the yield curve needed to remain low and the Treasury overhang couldn’t become a problem.
Now the problem is the Fed is tending to domestic concerns such as inflation and unemployment while they’re disregarding the international concerns of the dollar as the reserve currency. This conflict of interest is called the Triffin paradox.
This conflict of interest is what is undermining the US dollar. Foreigners are staying away from buying treasuries. This is why the dollar is falling.
Mainstream Business Media is coming out and saying that the FED needs to raise rates so the dollar will be strengthened in the international currency markets. But the whole irony is that the more the FED raises rates, the worse the dollar will perform. This is because the whole yield curve is shifting up and foreigners are staying away from buying all treasuries.