Clearly, Europe is in crisis with very high unemployment figure of 11% (surely at least 5% higher-nobody can trust the government’s figure) and some peripheral countries have already plunged into recession. Even the mighty Germany is shaky with industrial production output spiral down. Banking crisis (already come to light) in Europe will escalate in the next 2 years. But who cares as long as money can be made from the markets.
Today ECB President Mario Draghi said: Europe’s problems are structural, not cyclical, and without reforms there can be no recovery. He noted the seriousness of the problems but he is trying to cure the illness by the wrong medicine (Q.E).
I have forecasted all these problems well ahead in my eBooks. Despite all these problems, many are still not aware of the current events and some analysts still refuse to accept the fact this is the key reason to trigger the rise of USD. Many are still putting the blame on ‘manipulation’ that causes gold, silver to plunge. As I say, Gold will rise and rise but not now.
Wake up!, manipulation is always there no matter ‘what’ as the markets are rigged at all times and controlled by the big banksters (fraudsters). But don’t lament and never overly focus on ‘manipulation’ to affect your trading and investing. Focus on what you can analyse from the technical, cycle, fundamental and sentiment perspectives and flow with the smart money to reap profits.
But be warned, U.S has a bigger hidden economic problems which probably will come to the limelight by 2016-2017. In the Fed’s minutes, some Fed officials said that persistent weakness in Europe would lead the dollar to strengthen too much, pinching exports. And also seen as potentially slowing the expected gradual increase in inflation. They also fretted about slower growth in China and Japan as well as unrest in the Middle East and Ukraine. Well, all these are minor problems. If you read my blogs consistently, there are massive hidden problems waiting to implode in U.S.
Meanwhile trade accordingly. There is a better time to buy and a time to sell