COMMENT: Mr. Armstrong, I learn Reuters feedback this morning they usually stated “The greenback sank to a three-year low … the buck down greater than 10% for the yr. If it stays that approach within the coming days it is going to be its greatest first half of a yr fall because the early Seventies – successfully the period of free-floating currencies.”
The exaggeration and bias within the monetary information have grow to be outrageous. I’ve been on this discipline for 30 years. By no means have I discovered the press so dishonest and politically pushed. They’re attempting to create the collapse of the greenback to overthrow Trump. That is just like the polls. They lie about all the things.
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REPLY: I totally agree. It makes me need to give up and conceal underneath the covers, for they’re intentionally distorting the world, and all the things they do is to push us into conflict. I’m so sick of the exaggerations and lies, as they don’t care in regards to the individuals, the nation, or our future. NOTHING – simply the second and learn how to win in any respect prices.
Right here is our Greenback Index again to 1902. It means that you can see the actual pattern and put all of it in perspective. Under is the US Greenback Index, which started in 1988. It omitted the greenback excessive in 1985, to not point out the greenback decline into 1976.
Right here is CNN faking the information, standing within the deepest puddle they will discover, whereas the movie crew is just ankle deep. All the things is all the time the worst they will presumably undertaking. They trash the greenback as a result of Trump desires to interchange Powell with somebody who will decrease rates of interest. Sorry, Trump is a biased borrower, not a lender. So he seems at all the things from just one aspect of the desk. Europe entered destructive rates of interest in 2014, strip-mining pension funds and financial institution reserves. Decrease charges hurt savers for the advantage of debtors. That is all the time a one-sided view that by no means is smart.
So let me see. Rates of interest rise in bull markets and all the time decline in bear markets. That’s actuality! Nonetheless, the press has in some way offered the concept that reducing charges is bullish for the inventory market. It’s all based mostly on Keynesian Economics, which was based mostly on Authorities Intervention following Karl Marx. This presumption that the federal government is able to managing the financial system underneath socialism is merely presumptuous. Why fear. The socialists will take all the things, we’ll personal nothing, and be so excited, completely satisfied, and grateful, for of their e-book, we’re too STUPID to know something anyhow.
Right here is the Nice Recession 2007-2009. The inventory market rises with RISING charges as a result of that exhibits there’s a demand for cash and investing. When charges decline and even went to NEGATIVE to punish individuals for NOT investing, that’s the reality. That is precisely OPPOSITE of the nonsense the FAKE FINANCIAL NEWS stories as a result of they don’t give a shit in regards to the reality. They should discover the deepest puddle to magnify all the things.
There’s NO definitive rule that even a selected degree of rates of interest will affect that market. The strongest bull market was 1929 and there we see the bottom degree of rates of interest. The opposite affect is CAPITAL FLOWS. Fort 1929, all of the capital poured into the USA as a result of it was right here, hiding throughout World Struggle I. There was the primary G4 assembly in 1927 when the central bankers satisfied the US to decrease rates of interest, and that might drive the cash to return to Europe. That failed.
If you happen to suppose the inventory market will DOUBLE, you’ll pay 20%.
If you don’t suppose it is going to rise by 1%, you’ll not pay 1%.
