ECONOMIC UPDATE: Get Ready for the Dollar’s Burial
The bet on The Street as of today is that 62 percent believe the Fed will push up interest rates 25 basis points after the May meeting
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Two weeks ago, the headline of Gerald Celente’s Trends in the News video was “DEATH OF THE DOLLAR ON THE DOORSTEP.”
Since that time, the dollar Index has fallen to a two-month low against a basket of six developed economy currencies. And as this week’s cover of The Trends Journal illustrates, get ready for the dollar’s burial.
It was high interest rates that drove the dollar up against most foreign currencies. As we had forecast, the higher the Federal Reserve raises interest rates the deeper the U.S. economy will fall.
And now the damage of the high interest rates has become evident.
Yesterday, the March U.S. ISM manufacturing report showed activity dropped to 46.3, the lowest level since the beginning of the COVID War, May 2020, when much of the nation was locked down by politicians who imposed draconian mandates.
“Everything in this report was weak. Prices paid fell from 51.3 to 49.2, while employment plunged from 49.1 to 46.9. Demand is falling off a cliff as new orders plunged from 47.0 to 44.3. Inventories are contracting and demand continues to soften,” Ed Moya of OANDA told Kitco.
Further illustrating the higher interest rate damage, the U.S. Labor Department reported yesterday that job openings fell below 10 million in February.
Racking up its lowest number in nearly two years—when the nation was fighting the COVID War and many businesses were shut down—this is a strong indication that the Federal Reserve’s stated mission to slow the labor market so wages fall is working.
TREND FORECAST: The weaker the economic data the greater the odds the Federal Reserve will at the most just raise interest rates 25 basis point when they meet again in early May. However, should the economic landscape continue to worsen between now and then, the Feds will not raise interest rates next month and will lower them by the end of the summer.
Again, the lower interest rates fall the deeper the dollar will decline, since it has been artificially boosted by the Fed’s interest rate hikes which brought it up from 0.25 percent to 0.50 percent last March to 4.75 percent to 5 percent this March. And the lower interest rates fall and the deeper the dollar declines… the higher gold prices will rise.
The bet on The Street as of today is that 62 percent believe the Fed will push up interest rates 25 basis points, while others 38 percent say they will pause.
Worst is Yet to Come
Repeating what we have forecast, but now it is “official” because it came from the top of the Bankster Bandits Syndicate, in a letter to shareholders of JPMorgan Chase, it’s CEO Jamie Dimon, warned that “As I write this letter, the current crisis is not yet over, and even when it is behind us, there will be repercussions from it for years to come.”
Dimon said that “… while this is nothing like 2008, it is not clear when this current crisis will end. It has provoked lots of jitters in the market and will clearly cause some tightening of financial conditions as banks and other lenders become more conservative.”
While we agree that it will cause tightening of money being loaned out by banks, we disagree that the economic damage will not be as severe as it was during the Panic of ’08. Indeed we forecast it will be much worse. Absent the mainstream rhetoric but a very important economic trend is our forecast of an Office Building Bust that will be a key factor in bringing down banks and businesses across the nation.
TRENDPOST: Bankster Syndicate? Yes, by their deeds you shall know them. This is the JPMorgan that was hit with five felonies, all of which they admitted and as Wall Street on Parade notes with “a rap sheet that is unprecedented in the annals of banking in the U.S.”
Among its criminal felonies, JPMorgan rigged the precious metals market for some eight years that, as reported by Wall Street on Parade (WSoP), involved “tens of thousands” of incidents. The Justice Department wrote that traders at JPMorgan Chase:
“…knowingly and intentionally placed orders to buy and sell precious metals futures contracts with the intent to cancel those orders before execution (‘Deceptive PM [Precious Metals] Orders’), including in an attempt to profit by deceiving other market participants through false and fraudulent pretenses and representations concerning the existence of genuine supply and demand for precious metals futures contracts.
“By placing Deceptive PM Orders, the Subject PM Traders intended to inject false and misleading information about the genuine supply and demand for precious metals futures contracts into the markets, and to deceive other participants in those markets into believing something untrue, namely that the visible order book accurately reflected market-based forces of supply and demand.
“This false and misleading information was intended to, and at times did, trick other market participants, including competitor financial institutions and proprietary traders, into reacting to the apparent change and imbalance in supply and demand by buying and selling precious metals futures contracts at quantities, prices, and times that they otherwise likely would not have traded.”
Rig it Once, Rig it Twice
In a nation where the Bigs and the Rich get a slap on the wrist for their crimes while the plantation workers of Slavelandia are punished to the full extent of the law for their illegal activities, the nation’s top Bankster is running the gold powerhouse. As WSoP headlined yesterday, JP Morgan Chase Controls 53 Percent of All Precious Metals Contracts Held by Banks.
And further illustrating the criminality of the Banksters and how, as George Carlin noted that “It’s one big club, and you ain’t in it,” this is today’s WSoP headline article: After Pushing the Wall Street Scheme to Repeal Glass-Steagall, the New York Times Returns to Puff Pieces on Rodge Cohen and Jamie Dimon.
We also note this WSoP article to further illustrate that what is being sold as “news” by the mainstream media is nothing more than selling the government/big business line. The facts speak for themselves.