Monday, 3 October 2011

USD carry trade unwind - short term

From EYES: BOE should turn on the money printing press again and cut taxes!

What does this mean?

Cutting taxes = less revenue

How to replace revenue shortfall? Money Printing

= Devaluation of money! USD devalue, GBP devalue, EUR Devalue = Global massive inflation.

Maybe stock prices will remain the levels now, because so much money is being printed. The stocks are Intrinsically worth less.

Anyway as i have said many many post back. DXY has to go to 82~83 before it hit the very important point.

From my screen it is 79.6 now.... not too far away.. by the time EURO will be $1.25

GOLD of all the things might be $1500 level...

This represents the global unwind of USD carry trade.

When it hits too high. the QE comes along and inflate it again! The game just keeps going.



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