This week, Bill Holter joins Palisade Radio. Bill has been interviewed quite a bit lately, and with all the events in the European currency market recently – we thought now would be a perfect time to have Bill on the show. Bill certainly delivered a strong case of why the problems in Europe has yet to manifest themselves fully in the global financial markets.
Visit original interview at Palisade Radio.
Hi Bill,
Today’s thoughts,,,
Why is the dollar so strong?
With a good majority of US debt being held by other countries, a strong dollar increases the “value” of their reserves.
As other countries rid themselves of USD’s their ROI increases in commodities. i.e. oil, copper etc.
Since all currencies are fiat, and the dollar being as strong as it is, commodities are over priced in other fiat currencies.
Listening to your interview, QE4 will be needed to convert all the US treasuries coming home to roost.
I don’t think the crash in commodities is due to bad global economy. I think it’s more related to the strong dollar, and weak US economy. The US economy when strong, supports high commodity prices. But what happens when the USD is strong and commodity prices high? The rest of the world is inflated out of being able to afford those commodities. Basic supply and demand.
Another reason for strong USD, is in preperation of the USD reset. Get the USD strong, then take 30% away.
Think of all the world’s fiat currencies as a big pool of water. The central banks are fans blowing down towards the fiat water. When the Fed (probably the biggest fan) turns on it pushes the water near it down, forcing the water level higher at the other central banks. Each instance of QE (fed, BOJ, ECB etc) raises the level of water in the pool. Eventually a fan will be submerged and not spin and thus not lower the water level around it. Oh did I mention that fiat is shit?
And so, the shit hits the fan.
Doesn’t matter which fan is submerged first, as they all are needed to keep the water from overflowing.
Should I smoke another??? ha ha
Have a great day.
the global economy is very weak, commodities get sold and margin paid back which creates dollar demand.