I have to revise my Euro analysis as we broke through the strong resistance quite easily this week due to the crossing forces of a rate hike of the ECB and
a likely government shutdown USA. The last high was taken out and the trendline at the same level. Around 1.45-6 the current run should run out of steam as reverse briefly but we are now mandatory heading for the 1.50 level and I suspect even the 1.60 within 6 months. While US corps are heaving a prty in their board rooms due too very low financing rates and very competitive Dollar rates they still might get some headache as the material intensive businesses have the problem of exploding input prices. As Turkey claims only to have 4 % inflation the real one is rather around 15-20% – I saw today the second Starbucks price increase these year of about 5%, with gasoline ( the worlds most expensive ) at new records of 2.80$ per litre we can an idea what I am talking off. Anyway the deteriorating Dollar is the reason for the price explosion and this can fully be blamed on the FED banksters who have to finance the still bankrupt banks at zero with daily infusions of freshly printed billions.
Some stunning remarks from Dallas Fed’s Dick Fisher: ” Our duty is most distinctly not to monetize?or even be perceived as monetizing?the debt of fiscally imprudent government. Throughout the history of nations, monetizing the budgetary excesses of governments has proven to be a direct path to economic perdition. Having already peeked inside that door, I feel strongly that we must now shut it, lock it and throw away the key.” Well, thanks Dick. You are only $2.6 trillion dollars late.