Day: December 1, 2016

Is Janet Yellen trying to crash stocks to screw Trump?

Ever since the $USD began its bull market run in mid-2014, the Fed, lead by Janet Yellen, has intervened whenever the $USD cleared 98.

The reason for this was the following…

Over 47% of US corporate sales come from abroad. With the $USD spiking, pushing all other major currencies generally lower, US corporate profits began to implode. As we write this today, profits have fallen to 2012 levels.

Note when this whole profit massacre began.

Because of this, the Fed has “talked down” the $USD anytime it began to push higher.

Until today…

Since it was announced that Trump won the Presidency, the Fed has allowed the $USD to ramp straight up. It is currently over 101…and the Fed hasn’t said a word.

So we ask again… is Janet Yellen trying to crash stocks to screw Trump?

We all know the Yellen Fed is one of the most political in history with Fed officials openly donating money to the Clinton campaign.

Now Trump has won… the $USD soars to 101… and suddenly the Fed is silent? Not one Fed official has appeared to talk about putting off a rate hike or some other statement that might push the $USD lower…

This could literally crash stocks through any number of means:

• China implements a massive one-off devaluation of the Yuan.

• The $10 Trillion US Dollar carry trade blows up.

• The $199 Bond Bubble implodes as debt deflation ripples through the financial system.

• The $555 Trillion derivatives market based on interest rates ignites courtesy of a bon sell-off.

Another Crisis is brewing… the time to prepare is now.

If you’ve yet to take action to prepare for this, we offer a FREE investment report called the Prepare and Profit From the Next Financial Crisis that outlines simple, easy to follow strategies you can use to not only protect your portfolio from it, but actually produce profits.

We made 1,000 copies available for FREE the general public.

As we write this, there are less than 70 left.

To pick up yours, swing by….

http://phoenixcapitalmarketing.com/Prepare1.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

 

 

 

 

 

 

 

 

 

 

It is said that history has a sense of irony. The latest US election is not an exception.

Consider the following…

1. Donald Trump campaigned aggressively on trade… particularly his opposing of the fact that the US gets taken advantage of by foreign nations via bad trade deals.

2. Trump wins the Presidency on November 8, 2016.

3. US trade gets royally screwed in the currency markets.

This is not conspiracy theory. Since Trump won the Presidency, Japan has absolutely SHREDDED the Yen relative to the $USD. In a mere three weeks, the Yen/ $USD pair has collapsed an astounding 12%.

That doesn’t sound like a huge deal, so look at the longer-term chart.

That is a massive currency crash. The Bank of Japan has accomplished in three weeks what previously took six months and a $100 BILLION+ expansion of a massive QE program.

The real problem with this is that it is forcing the $USD sharply higher, triggering a potential crisis the debt markets as the $10 TRILLION US Dollar carry trade ignites.

If you’re unfamiliar with the concept of a carry trade, it occurs when you borrow in one currency, usually at a very low interest rate, and then invest the money in another security, whether it be a bond, stock or what have you, that is denominated in another currency.

Globally over $10 TRILLION of $USD is doing this right now. $10 Trillion: an amount greater than the economies of Japan and German combined.

Every tick higher in the $USD… means more of this trade blowing up. Already, it’s leading credit stress in Asia.

Another Crisis is brewing… the time to prepare is now.

If you’ve yet to take action to prepare for this, we offer a FREE investment report called the Prepare and Profit From the Next Financial Crisis that outlines simple, easy to follow strategies you can use to not only protect your portfolio from it, but actually produce profits.

We made 1,000 copies available for FREE the general public.

As we write this, there are less than 80 left.

To pick up yours, swing by….

http://phoenixcapitalmarketing.com/Prepare1.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research