Currency Devaluation in Belarus Causes a Run on Toilet Paper
While we have recently seen various fundamentally driven predictions for the S&P going back to its 1994 level of ~400 (most recently from Albert Edwards and Russell Napier), few charts predict a comparable major retracement in the key equity index. And while it is not quite a variant of the Kondratieff Wave chart familiar to most, this chart courtesy of Sean Corrigan shows the historical 33 year peak to trough frequency of the S&P, emphasizing the cyclical periodicity observed in market cycles. The chart predicts the next 33 year low to occur some time in late 2015, taking the S&P to the proverbial 400 level. As Corrigan observes: "A third, post-94 Bubble-era decline of -50% would unwind all of that move and half the log rise of the Great Bull Market (something the '49-'68 move did) and return to both the mid-1960's highs and Fib retrace the whole post - WWII move. Doing this by late 2015 would preserve the 33 year span."
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Glut of Foreclosed Homes Threaten Market
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Jim Sinclair’s Commentary
UN sees risk of crisis of confidence in U.S. dollar May 25, 2011 2:17 PM ET | Last Updated: May 26, 2011 8:15 AM ET
By Patrick Worsnip
UNITED NATIONS The United Nations warned on Wednesday of a possible crisis of confidence in, and even a collapse of, the U.S. dollar if its value against other currencies continued to decline.
In a mid-year review of the world economy, the UN economic division said such a development, stemming from the falling value of foreign dollar holdings, would imperil the global financial system.
The report, an update of the UN World Economic Situation and Prospects 2011 report first issued in December, noted that the dollar exchange rate against a basket of other key currencies had reached its lowest level since the 1970s.
This trend, it said, had recently been driven in part by interest rate differentials between the United States and other major economies and growing concern about the sustainability of the U.S. public debt, half of which is held by foreigners.
As a result, further (expected) losses of the book value of the vast foreign reserve holdings could trigger a crisis of confidence in the reserve currency, which would put the entire global financial system at risk, it said.
The 17-page report referred at another point to the still looming risk of a collapse of the United States dollar.
More…
Here is the rock and the hard place where in the writer thinks the hard place would be better and writes an anti QE article. What the writer does not realize is the biblical size of the inflationary depression that would result from not applying QE to infinity.
The rock is currency induced cost push inflation. Simply stated, we are screwed.
UN sees risk of crisis of confidence in U.S. dollar May 25, 2011 2:17 PM ET | Last Updated: May 26, 2011 8:15 AM ET
By Patrick Worsnip
UNITED NATIONS The United Nations warned on Wednesday of a possible crisis of confidence in, and even a collapse of, the U.S. dollar if its value against other currencies continued to decline.
In a mid-year review of the world economy, the UN economic division said such a development, stemming from the falling value of foreign dollar holdings, would imperil the global financial system.
The report, an update of the UN World Economic Situation and Prospects 2011 report first issued in December, noted that the dollar exchange rate against a basket of other key currencies had reached its lowest level since the 1970s.
This trend, it said, had recently been driven in part by interest rate differentials between the United States and other major economies and growing concern about the sustainability of the U.S. public debt, half of which is held by foreigners.
As a result, further (expected) losses of the book value of the vast foreign reserve holdings could trigger a crisis of confidence in the reserve currency, which would put the entire global financial system at risk, it said.
The 17-page report referred at another point to the still looming risk of a collapse of the United States dollar.
More…
S&P 400 - The Technical Case
Submitted by Tyler Durden on 05/28/2011 17:15 -0400While we have recently seen various fundamentally driven predictions for the S&P going back to its 1994 level of ~400 (most recently from Albert Edwards and Russell Napier), few charts predict a comparable major retracement in the key equity index. And while it is not quite a variant of the Kondratieff Wave chart familiar to most, this chart courtesy of Sean Corrigan shows the historical 33 year peak to trough frequency of the S&P, emphasizing the cyclical periodicity observed in market cycles. The chart predicts the next 33 year low to occur some time in late 2015, taking the S&P to the proverbial 400 level. As Corrigan observes: "A third, post-94 Bubble-era decline of -50% would unwind all of that move and half the log rise of the Great Bull Market (something the '49-'68 move did) and return to both the mid-1960's highs and Fib retrace the whole post - WWII move. Doing this by late 2015 would preserve the 33 year span."
King World News has weekly metals review and McEwen, Leeb interviews
In the weekly precious metals review at King World News, Bill Haynes of CMI Gold & Silver says retail buying eased off last week but futures market analyst Dan Norcini says big money flowed back into commodities. You can listen to their comments at King World News here:Housing Apocalypse Tomorrow – 675,000 homes in foreclosure have made no payment in over two years.
Glut of Foreclosed Homes Threaten Market
US Worse Off Financially than Euro Nations
Greece Denies Missing Fiscal Targets as Default Looms
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The Political Doctrine of Statism by Lew Rockwell
Mirror, Mirror on the Wall, When is the Next AIG to Fall? - Marc Faber
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