Dollar STRENGTH is crushing world markets (including the U.S. market)! Why?

The U.S. Dollar is now much stronger than all other currencies on the market. The GAP is widening and emerging markets (like Turkey, Argentina, Vietnam) are getting crushed. The Fed policies of trying to curb INFLATION are causing emerging markets to collapse (as they must pay higher interest rates to survive). What the FED does affects all markets!

As I write the Nikkei index is down some 830 points and soon the Dow index will crash further. The Dow index crashed over 1,000 points on Friday. My sense is that this crash will continue as long as our FED chooses to elevate our interest rates. Will inflation eventually come down? Yes, but along with a lower inflation will come a crash in all world markets. The start is here NOW.

Housing is crashing as NEW construction is adding homes to the market but sales have mostly stopped. This means that the inventory of homes for sale will INCREASE and eventually this will produce DECLINING prices. All this will happen soon...with 2023 being DIRE for our Real Estate Markets. As our Real Estate Markets crash and burn so will our GENERAL economy. All is 'tied' together!

The Baltic Dry Index is now crashing and this means that our Supply Chain problem is not getting resolved. More supply of goods will create sales and gradually these lower prices will produce bankruptcies in many of our markets. Some supply situations could cause more INFLATION (say food and agriculture) but the general goods sectors could produce DEFLATION. We live with diabolic markets which make no sense.

The bubbles will stop when consumer SENTIMENT crashes. This is starting now in the housing sectors. At some point investors will abandon the risky assets (such as tech stocks) and choose SAFE HAVENS for their savings. This is likely to happen AFTER the housing crash...probably later this year. Housing will set off the FUSE for all markets as people understand housing better than other investments.

I have followed the real estate markets for over 50 years. A WEAK dollar helps to PUMP UP these markets. Today, our FED has chosen to give us a STRONG dollar. All this has emerged since our FED started to INCREASE interest rates. Higher interest rates affect all markets but especially the HOUSING sector. Today, the biggest issue is AFFORDABILITY. This affordability situation will cause the coming housing CRASH.

World markets are now interesting to watch. The policies of our FED (to spike up interest rates) is causing a widening GAP in all currencies (when compared to the dollar). The WEAK currencies will fail in 2022-2023. Currencies like the Argentine peso will continue to weaken and this will PRODUCE much higher INFLATION. Political problems will follow. Argentina could experience over 100% inflation in 2023.

The same could happen in Turkey. The Turkey lira has crashed and currently the inflation rate in Turkey is over 80%. It will get much worse IMO. Emerging market currencies will WEAKEN as the dollar gains strength from these HIGHER interest rates. All this change will produce a HUGE market crash for the global markets by the end of this year. It's all happening quickly as our markets are now interdependent. 

We live with DIGITAL money today (really FAKE money of one's imagination). FAKE money changes with the whims of CENTRAL BANK policy. Algorithms create our prices and algorithms create most trade. All this is possible as our currencies are now DIGITAL. What is a 'digital' currency? It's a FAKE currency within my MIND (and your MIND). It's 'nothing' physical and these currencies are VOLATILE (emotional).

Computers trade our markets and all our prices derive from computer trading. All this is UNSTABLE and eventually all will CRASH and BURN. It may be WISE to buy some silver coins and gold coins for the coming barter economy which is emerging. Silver (in coin form) is NOT digital. Gold (in coin form) is NOT digital. These items have SUBSTANCE and this makes them money when the other markets CRASH.

Think on these items to discern what is happening in real-time. Watch these digital markets change from moment to moment as our AUTHORITIES manipulate their algorithms to trade these markets. Who has all the FAKE money today? Think! Who has control over our computer monetary SYSTEM? We live with computer money and CONTROL is within our 'hidden' Central Banks. Amazing corruption! Have a great day.

I am: Donald B. Swenson, donaldswenson.blogspot.com and http://kingdomecon.wordpress.com.