It's deja vu all over again.
In a repeat of yesterday's session, where US equities and the dollar levitated in a one-way trade, Tuesday's muted session - where in addition to closed China and South Korean markets, Germany's Dax is also shut for holiday - has seen early dollar and European equity strength, while the S&P is set for new record highs amid higher E-minis and a VIX that is again lower after 5 consecutive days of declines.
Even as Wall Street appears to have flipped in its view on the dollar, which bottomed hard on the day the PBOC announced its revised foreign policy nearly one month ago when it invited speculators to once again short the Yuan, one analyst, Bloomberg's Mark Cudmore, thinks rumors of the dollar's rebirth and upcoming surge, are greatly exaggerated.
He explains why in his latest Macro View note released overnight, and republished below.
There are many flaws in the bullish argument for the greenback.
Amid a creeping global de-dollarization, Vladimir Putin appears to be the one leading the charge from the precious metal perspective.
As Bloomberg's Yuliya Fedorinova and Olga Tanas report, the Bank of Russia has more than doubled the pace of gold purchases, bringing the share of bullion in its international reserves to the highest of Putin’s 17 years in power, according to World Gold Council data.
Rising at a pace of around 15% per year, Russia's absolute gold horde is at a record high...
Homebuilder Lennar has come up with a genius strategy to partially eliminate the massive bubble in student loans that has crippled recent graduates and forced them into a life devoid of the American dream of home ownership...it's a "two birds with one stone" kind of solution. Yes, rather than struggle to make those monthly student loan payments, Lennar has developed an "innovative mortgage" designed to allow millennials the opportunity to convert their student debt into an "investment" in America's "Housing Bubble 2.0."
Authored by Michael Snyder via The Economic Collapse blog,
When people are dependent on the government they are much easier to control.
We are often told that we are not “compassionate” when we object to the endless expansion of government social programs, but that is not how the debate should be framed.