Daily Digest

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Daily Digest 12/18 - U.S.-Cuba Relations Overhaul, A Downhill Run for the Dollar in 2015

Thursday, December 18, 2014, 10:48 AM

Economy

U.S. Dollar Collapse? USD Index Trend Forecast 2015 (Adam)

For as many years as I can remember and 2014 has been no exception, the most vocal mantra that can often be heard is one of warnings of an always imminent U.S. Dollar collapse as a consequence of a myriad of highly convincing arguments such as a soaring debt mountain, deficit, rampant money printing, demographics, rise of China, death of the petro-dollar, et cetera. However the dollar trend of recent years shows that the dollar in actual fact is little changed, where even the recent breakout only put the USD barely 4% outside of its multi-year trading trading range of between 85 to 79 and still within its longer-term trading range of 89 to 75.

John Williams: A Downhill Run for the Dollar in 2015 (Kevin J.)

Rosy GDP numbers may have cheered the masses, but John Williams of ShadowStats.com says we're a long way from prosperity. In this interview with The Gold Report, Williams debunks the myth of economic recovery and warns that we still have serious debts to settle. That is why he is recommending caution in 2015 to preserve purchasing power and maintain your standard of living.

US to embark on massive overhaul of US-Cuba relations: Officials (Thetallestmanonearth)

U.S. President Barack Obama and Cuba's Raul Castro spoke separately at noon ET about relations between the two countries, which have had a strained relationship for decades. The U.S. first imposed an embargo on Cuba in 1960 and cut diplomatic ties the following year.

Opposing Forces At Play In The Precious Metals Complex (Taki T.)

It is not so much the absolute rate of inflation that is relevant for the gold price, but rather the rate of change of inflation. Rising inflation rates generally mean that the environment for the gold price is positive, while falling rates of inflation (= disinflation) indicate the environment is negative. Since autumn of 2011, the trend of the PCE index is clearly declining. And the ongoing collapse in the oil price is certainly strengthening that trend.

Axel Merk: U.S. Debt Crisis & Dollar Devaluation Ahead (Herman J.)

If we were to go back to the historic cost that we’ve paid for servicing our debt, we would go and pay about a trillion dollars a year to service our debt – and that’s annually – before any other expenses on the budget. I don’t think we can afford that. And with that, we have yet another incentive in the system to keep interest rates low: The Federal Reserve, in my view, is going to come in and lower the cost of borrowing. Well, something has to give, and that something is the currency.

Central Banks, Two Wrongs Don't Make It Right (Seb T.)

These Treasuries are issued with different maturities and sold in auctions. There are short-term Treasury Bills (with maturities up to 1 year) Treasury Notes (with longer maturities up to 10 years) and finally Treasury Bonds (with maturities greater than 10 years). Just as there are different maturities, there are also different interest rates. Short-term T-Bills normally involve less risk and therefore lower interest rates (yield). On the other hand, longer-term T-Bonds usually pay more interest because more time involves more unforeseeable variables in the economy.

More To Ruble’s Collapse Than Meets The Eye (Evan K.)

The ruble is dying, and fast. In what is now being dubbed ‘Black Monday’ the ruble’s value to the dollar dropped nearly 15 percent. Tuesday brought no respite and the ruble fell another 10 percent. The ruble’s collapse follows a similar – though by no means as extreme – slump in oil prices. Still, the Russian economy’s troubles are deeper than that and President Vladimir Putin will be hard-pressed to find an easy out. With a recession looming, state energy companies are struggling to stay afloat, if not directly contributing to the country’s woes. On the year, the ruble has lost more than 55 percent of its value against the dollar, breaking psychological barrier after psychological barrier. Tuesday’s low of 80 marks a new record and harkens back to the period of hyperinflation that characterized post-Soviet Russia. Then, as now, citizens are seeing their material wealth disintegrate amid rising costs domestically.

The largest vessel the world has ever seen (Dana T.)

On board Prelude, amid a forest of cranes and pipes, it is almost impossible to get your bearings. Standing near the bow and looking back, the accommodation block that rises from the stern can just be made out in the distance.

The yard, one of the largest in the world, is a mesmerising sight with around 30,000 workers toiling on the usually unseen infrastructure of the global supply of fossil fuels: dozens of drilling ships, oil storage tankers and gas transporters.

Gold & Silver

Click to read the PM Daily Market Commentary: 12/17/14

Provided daily by the Peak Prosperity Gold & Silver Group

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2 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Zimbabe

Bob Mugabe- The honeymoon phase is over. Now you discover the true nature of the Beast that Loved You.

Thanks Sax.

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