Looks like the “strong dollar-short vortex” is accelerating:
Armstrong wrote:
The European Central Bank is instructing banks to restrict the conversion of Euros to dollars. The Euro has fallen to 113006. Once again, the dangerous game here is when we cross that line of demarcation between CONFIDENCE in government and the REALIZATION that there is nobody in control but the free markets. Once all the talk and all the promises are no longer considered to be worth listening to, that is when the monetary crisis begins to really shake the foundations. We are moving closer to that point of no return.
The truth always comes from the mouths of babes. In the case of politicians, it is the new one who comes to power and has not yet learned the tricks of the trade. In this respect, Italy has spoken the truth. The ECB has had the Eurozone on life-support. They cannot pull the plug without the collapse of the Euro and with that, lies the jobs in Brussels. This is why they will become draconian and attempt to outlaw selling the Euro all to maintain their jobs. They will lose. The free markets ALWAYS win!
Armstrong wrote:
The Euro has continued to fall dropping at the time of this post to 11343. The bottom of this channel lies at the 11315 area and behind the curtain, our phone is in meltdown mode. After’s Italy warning that the ECB has to keep QE going or the entire bond market will collapse forcing the breakup of the EU has finally made many of the dollar-haters start to realize that indeed Draghi has destroyed the European economy and bond market.
Armstrong wrote:
We have been warning that the first to crack would be emerging markets and Turkey was the focal point. We are also beginning to witness the debt crisis in China due to loans in dollars as well. Many of these companies simply lacked the sophistication to understand currency risk or hedging strategies. The second in line would be Europe and the Euro is really in danger of bringing the entire world economy down. The third in line will be Japan, and then finally the crisis will hit the USA. We are just living in an era where people have believed the nonsense for far too long. Adam Smith’s Invisible Hand cannot be defeated.
This is SERIOUS. People have to understand that this is NOT my personal belief, opinion, or anything else based upon some predetermined conclusion. People attack me personally because they cannot defend a system that NOBODY in their right mind would have created from scratch. Our system is a patchwork of band-aids that are applied to each crisis and then never removed. Collectively, that have combined to create a complete nightmare. This has become such a mess, there is NOT a single person I know in government capable to even correcting this mess. The truth ALWAYS is exposed.
Armstrong wrote:
QUESTION: Mr. Armstrong, It seems that the conservatives have split into two parties here. It is the same nonsense that they pulled to overthrow Margaret Thatcher. I really do not understand why they think we have to be part of the EU which is so obviously a sinking ship. As we always said here, when there is a good fog in the Channel, you would never know Europe was even there.
I read your piece on how France can object and prevent a trade deal for rest of the members. France is a hopeless communist country. Their stock market is not even worthy of investment. It has never made a new high since 2000. My question is simple. Does your forecast for the pound necessitate that the conservatives really mess up this Brexit escape from the EU?
ANSWER: The basic trade numbers show that the United States received the most British export goods last year, followed by Germany and France. The top trade partner for imports was Germany, followed by the United States and China. The UK exported £31.7bn worth of products to the US. Britain has NEVER benefited from the EU. Your economic growth has declined ever since joining back in 1973. I use to have detailed conversations about this with Margaret Thatcher. Britain’s biggest trading partner is the USA yet she cannot negotiate trade with the USA as long as it remains inside the EU. It is absolute insanity.
Now, as for the pound, unfortunately, it continues to point lower against the dollar. Interestingly, the computer pinpointed the crisis in the Euro would begin during the 3rd quarter here in 2018 where we had both a Directional Change and the beginning of a Panic Cycle. Brexit will end Friday, March 29th, 2019. Note that there is a turning point showing up in the 1st quarter next year but the big one will be the 3rd quarter 2019.
As far as price against the dollar, there is support technically in the 92 area. The very worst support is at 53, but that does not seem likely absent war in Europe.
