Dollar Strengthens From Two-Month Low Versus Euro

Dollar Strengthens From Two-Month Low Versus Euro

The dollar strengthens and gold falls in price as the world discovers the best inflation adjusted returns are found in the USA. The Net long-term TIC Flows for November show a sharp trend reversal as the world buys US dollars and treasuries for a safe higher rate of return like the USA banks have enjoyed at 0.25% cost for the last two years.
With a 0.25% cost and a guaranteed 1.88% return banks make money. While investors are forcing European governments from Greece to Ireland to cut spending as governments prepare to sell $1.1 trillion of bonds this year, demand at Treasury auctions has been the highest on record.

The precious metals trend line is now down

Carbon thieves force European Union to improve security, close spot market. The EU estimates permits worth 29 million Euros ($39 million) may be missing. The European Union, whose decision to suspend registries halted the region’s spot carbon-emissions market following the theft of permits, said it won’t lift restrictions until member states step up identification checks.


World Markets:

World liquidity is shrinking because the USA is seen now as such a safe investment compared with massive illegalities and sucker sales like Hutchison Whampoa Ltd.’s sale. The Asian criminals are essentially selling their Brooklyn Bridge.

Red China engages in practices that are illegal in the Free World where trade must be fair. China is creating monopolies and cornering the market in Rare Earth's the way criminal organizations did a century ago. China thus is causing shortages and driving up prices all around the world and they are causing unemployment in manufacturing nations in the Asian ring. Remember they illegally imprisoned two Americans for doing diligent economic research for fear the Americans would expose Red China's economic corruption. Their Nobel Peace Prizewinner was thrown in jail because he accepted the peace prize. China should free the two Americans and let their Nobel Prize winner leave China.

Business trends

Friday
Leading Indicators Dec were up 1%, which is lower than the 1.1% before Christmas. The current stock market bubble is the only thing keeping the Leading indicators up. This is the opposite of the GE/MSNBC/Proved hype that Americans understood to be just socialist propaganda last November. The declining American unemployment rate by Communist standards is now quoted at half of what the real rate is, but is not yet up to where the FDR socialists put it (25%) during the FDR socialists Great Depression.
Philadelphia Fed Jan was 19.3 significantly poorer that the 24.3 last month. Again it was all GE/MSNBC/Pravada lies to help socialist retain power.
Crude Inventories 01/15 Jumped over 2M after declining by similar amounts in past weeks. Red China is behind the higher commodity prices around the world, not because they are doing well but because they bought up much of the world's natural resources in every continent and are raising prices to squeeze the free world.

This week:
Jan 25 9:00 AM Case-Shiller 20-city Index Nov
Jan 25 10:00 AM Consumer Confidence Jan
Jan 25 10:00 AM FHFA Housing Price Index Nov

Jan 26 7:00 AM MBA Mortgage Purchase Index 01/21
Jan 26 10:00 AM New Home Sales Dec
Jan 26 10:30 AM Crude Inventories 01/22
Jan 26 2:15 PM FOMC Rate Decision Jan
Jan 27 8:30 AM Initial Claims 01/22
Jan 27 8:30 AM Continuing Claims 01/22
Jan 27 8:30 AM Durable Orders Dec
Jan 27 8:30 AM Durable Orders ex Transportation Dec
Jan 27 10:00 AM Pending Home Sales Nov
Jan 28 8:30 AM GDP-Adv. Q4
Jan 28 8:30 AM Chain Deflator-Adv. Q4
Jan 28 8:30 AM Employment Cost Index Q4
Jan 28 9:55 AM Michigan Sentiment - Final Jan


Market Outlook Jan 24, 2011

Cracks are beginning to appear in the American stock market bubble in commodities, gold, energy, and other financial instruments depending on Asia's bubble which is beginning to show incredible amounts of ignorant speculation and corruption getting ready to be exploded. Honesty and trust, not Karl Mark, is what is lacking in Asian expansion.

Currently American investors remain at historic levels of optimism, although there were very few to be found actually investing in recent weeks. Most are already fully invested. Short Selling Against S&P 500 Companies is at a one-year low, lower than before the May Flash Crash. We are seeing evidence that Americans question that Apple and Google could really be worth more than Japan in market cap. American technology stocks are overpriced because General Electric socialists/ MSNBC/Pravda are selling out other American companies by giving away American technology to curry favor with the communists of China.

Rep. Paul Ryan and House Republicans embark today on an effort to significantly slash federal spending, including one prominent congressman promising to engineer 'the largest series of spending cuts in the history of Congress.'
By mid year we expect state and federal worker layoffs because the socialists have not put their government houses in order and the Tea Party wants smaller government. Raising taxes would allow states go even deeper in the hole with union contracts and tip into default. Many predict a major sell off at mid year when several individual states also are in budget crisis. But typically the stock market is six months ahead of economy. QE2 ends mid year but that is likely to be extended.

World Markets
Asian markets were down last night. China's market was down, -0.7%, Hong Kong down -0.3%, India down -0.2%, Jakarta down -1%, and Japan up 0.7%,

European markets are down this morning in a range of about 0.1% to -0.8% half way through their day.

US pre-market futures are flat about 0.0 % at 7:00 AM EST.