Well, we did see that US dollar index surging! but what and interesting week. As we come into the last month of the year and normally wait for a santa rally, there is lots going on in this crazy world of ours.
When We told our members back in June that there could be a big rally in the dollar, we have to wonder after seeing alot of action this week and the dollar breakout on the chart that we could be getting close to seeing this occur. On Friday The dollar posted its biggest gain since February 1999 against the yen as a better-than-forecast non-farm payrolls report encouraged traders to boost bets on Federal Reserve interest rate increases.
one of my rules for investing is being the contrariain. What the? so just what is a contrarian, well instead of getting suckered in like the rest of the crowd, go against them. Yes! thats right! Every man and his dog has been bearish on the US dollar right and that can mean one thing, down! well yes I do agree, but normally when you have everyone and all the analysts out there saying down at some point there will be and opposite reaction and a violent one too. Are we seeing this happen with the dollar? Well i guess the short answer to that is YES. Even though longer term we are bearish on the dollar.
Technically on the charts since the US dollar has broken out it means that higher prices now are likely for the US dollar index and this will put some pressure on the US commodities and equities also. Time will tell to see how all this plays out.
Seen at though Mr Bernanke still hasnt gone to the barber and done anything about that weird looking haircut of his. (shouldnt he just shave it all off) Mr Bernake testifies tomorrow about his actions to the senate. I know alot of people out there think watching Oprah, American Idol and staring at themselves in the shopfront windows seem more important, but I guess we could stop for a minute and talk about what matters most.
He has to get up infront of congress tomorrow and explain why he is a great chairman, and why he took that actions that he did. I think the guys in the sentate should introduce Bernanke to his seat by using this video as an introduction. Feel free to watch.
Remember we have shown this video here before, if you have seen it, you will realise he saw no crisis coming, employment getting better and House prices increasing over the mid to longterm. Ahhhh I will have what he is smoking!!
Anyway, would love for you to show your loyal views on what you think of Bernanke as the federal reserve chairman. Do you think he has done a good job? Or is he just yanking the chain and trying to keep everyone cool? I will let you be the judge?
Posted on December 3rd, 2009 by admin | 1 Comment »
Australia’s central bank today raised its benchmark interest rate by a quarter percentage point for an unprecedented third straight month.
The actual thing that was running through my mind was that this isn’t going to help people have a good Christmas. As more money now will be going into their home loans and less money on presents.
Once again this is confirming our views that the first signs of inflation are on the way. Even for a smaller economy and smaller country like Australia. I am the first to admit we have our fair share of problems and our government at times is more like watching a circus de sole act. But there are many countries watching what happened here here today.
Mortgage Repayments
This year’s interest-rate increases add about A$150 to monthly repayments on an average A$300,000 home loan, and may prompt consumers to trim spending that surged in the first half of the year after Prime Minister Kevin Rudd’s government distributed more than A$20 billion in cash handouts to households.
Mr. Kevin ‘fuddy duddy’ Rudd cleverly put us Aussies into debt overnight by copying Obama and spreading money all over the place when it clearly wasnt needed. Funny how when I ask around the stimulus money was bascially spent on Beer, wine, gambling and then maybe some gas to fill the car. So did it go back into the real economy, my thoughts would be NO.
It will be interesting to see what happens in the next few months especially with this fresh Dubai news that has hit the markets also.
