Business

Janet Yellen has confirmed that the ($USD) is going to collapse.

I don’t mean a systemic, going to zero, collapse (though one day the $USD, like all fiat currencies will fail). I mean that the $USD is going to drop hard in the coming 18+ months.

How hard?

I believe we’ll see the $USD in the 80s sometime in 2018. That’s a full 11%-13% lower from where the $USD is today. Put simply, the entire move in the greenback that was driven by the Fed ending QE will be unwound.

How do we know this?

In a project dubbed 'Bowline', Bloomberg reports that Deutsche Bank may shift about 300 billion euros ($350 billion) from the balance sheet of its U.K. entity to Frankfurt as client trading and assets migrate to the continent following Britain’s decision to leave the European Union. While not the first bank to threaten to move post-Brexit, the scale of asset movement is the largest yet.

Authored by Michael Snyder

On the heels of homebuilder optimism tumbling to 8-month lows in July, existing home sales slumped in June (down 1.8%, more than the 0.9% decline expected) to the second lowest SAAR this year. Existing home sales are now unchanged since September, but we note that average prices are up 6.5% YoY.

WTI crude remains stuck ominously below $46 despite a full court press jawboning, headline-pumping effort this morning. As oil leaders meet in St.Petersburg, Saudis promised to cut exports further, Nigeria suggested it would limit output (at dramatically higher-than-current production), Russia offered hope that Q3 had "big potential", and OPEC suiggested tighter compliance monitoring (as cheating has picked up in recent months).. but oil just won't budge.