Friday, January 26, 2018

Told ya.

Stocks Storm To Best Start Since 1987 Amid Dollar-Devastation.

Oh wow. Dollar devastation. Things are getting serious!  And honestly I'd like to say that I hate when people cherry pick charts. I mean, I guess he's "technically" right based on what the dollar was trading at right at start of the year.

The dollar was trading at 103 around Jan first 2018, and technically it hasn't been that exact price since 1987 at Jan 1. There have been infinitely more dramatic falls since then.

The last time the dollar traded at 103 was Sept of 2003. Four months shy of his narative Then falling 19 cents to 84 cents in 2008. But his headline makes it sound so much more dramatic! and terrifying. The dollar had already fallen 25 cents by the time Jan 1987 came around. Where it kept falling about 25 cents bottoming out in the year 1995 at 84 cents. Just for reference, the dollar traded around 84 cents for most of the Obama administration.

Yet, in the same article everyone seemed happy that bitcoin had stabilized at 11,000. It's still swinging 1500 bucks a day. But the dollar goes down 9 cents and it's "devastation".

BITCOIN / U.S. DOLLAR BTCUSD Market Open 10785.0 362.0 (3.25%)

Prev 11147.0 Open 11147.0 Volume 55.44K 1 Day Range 10276.0 - 11700.0

Is inflation stirring? Hell yes. But inflation is the norm in the economy, and deflation is NOT. This means we are returning to more healthy economy.  Inflation also brings wage pressure - deflation DOES NOT. Pick your poison.

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