Category Archives: Foreign

Draghi Speaks the Truth

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Draghi Speaks the Truth; ECB Will ‘Do What it Must’

Words are important. This is not just a headline, it is a reality…

Draghi says ECB will ‘do what it must’ on asset buying to lift inflation

Not ‘do what it thinks would be the best course for the European economy’, not ‘choose the path of least resistance in guiding the financial system to recovery’… the ECB will DO WHAT IT MUST.

As I have written til I’m blue in the face for the last 10 years, we are in the age of ‘Inflation onDemand‘©, 24/7 and 365. “…do what it must”… let that sink in for a moment.

Japan is trying to kill the Yen, China is dropping interest rates and the world over we have a rolling inflationary operation that is little more than a game of Whack-a-Mole. BoJ popped up a couple weeks ago and now this one… (more…)

Beware of the “Abe” Rhetoric

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As I reported in this recent post on Japan’s Nikkei Futures Index, price has entered “froth” (major resistance) levels seen in the beginnings of the 2007/08 financial crisis. As of tonight (Tuesday), price has held above the “line-in-the-sand” level of 16,666 and is now trading at 17,325, as shown on the Weekly chart of NKD below.

Beware of speculation that Prime Minister Shinzo Abe may be “considering dissolving parliament to shore up support,” as reported today in this Bloomberg article. This report may have simply been released to stir up emotions in the market place to lure short-sellers into the mix at these critical levels. (more…)