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DynamicTrends.com
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DynamicTrends.com
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News overnight from China that “Beijing would switch more of its $1.3 trillion reserves away from US bonds“ and that it “favors stronger currencies over weaker ones, and will readjust accordingly“ is no surprise, at least not to the staff at DynamicTrends. We are very surprised that it took China so long for this to happen and even more so that other countries that are pegged to the dollar haven’t retreated. The value of the U.S. Dollar is getting dangerously low as the bottom fell out from under the U.S. Dollar Index on overnight trading, hitting a low of 75.08. That puts inflation at 37% since the U.S. Dollar began its collapse in 2001. French president, Nicolas Sarkozy, addressing the United States Congress, said "The dollar cannot remain solely the problem of others. If we are not careful, monetary disarray could morph into economic war. We would all be its victims". (See Comment Below) Crude oil climbed over $98.00 in overnight trading and will likely exceed $100.00 per barrel by weeks end based on bullish fundamentals and U.S. Dollar induced inflation. Industry reports show that Crude Oil Inventories were Down 800k barrels and Gasoline Inventories were also Down 800k barrels. The decline in inventories indicates that usage is up in both markets. “At some point, those inventories will have to be replenished, which drives prices up“. Gold also rose to over $848.00, only $2.00 from its ALL-TIME high, set in January of 1980! The Fed cited high energy and commodity prices as a concern for potential inflation.On Wednesday, it was being reported that $200.00 Call Options were “flying off the shelves“. That means that speculators are betting that Crude Oil will reach $200.00 at some point. Here’s a part of the speech that brought tears to my eyes. Most Americans have long forgotten what we’re all about. French President Nicolas Sarkozy reminded us when he described his own vision of America, in his address before Congress today: “To the millions of men and women who came from every country in the world and who, with their own hands, their intelligence and their hearts, built the greatest nation in the world, America did not say, ‘Come and everything will be given to you,‘ “ he said. “Rather, she said, ‘Come and the only limits to what you will be able to achieve will be those of your own courage, your boldness and your talent.“ “Here, in your country, on this soil, both the humblest and the most illustrious citizens alike know that nothing is owed to them and that everything has to be earned. That is what constitutes the moral value of America.“ Please take a little time to let those words sink in! By Michael Scoglietti Copyright DynamicTrends
DynamicTrends - Financial Forecasting
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