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hisah
#5011 Posted : Monday, November 14, 2016 6:56:56 PM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
alutacontinua wrote:
alutacontinua wrote:
FFR futures pricing an 89% chance for a December Rate Hike. DXY just touched 100.


Pension Partners Rate Hike Odds:

Dec 16 - 86%
Feb 17 - 86%
Mar 17 - 88%
May 17 - 89%
Jun 17 - 93%
Jul 17 - 94%


With these kind of odds USD is aiming for infinity and beyond Laughing out loudly Laughing out loudly Laughing out loudly

Laughing out loudly Laughing out loudly
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
hisah
#5012 Posted : Tuesday, November 15, 2016 6:28:17 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
$/yuan fix back at levels last seen in 2008. The USD pegs are facing tremendous stress. Will the $/riyal peg fold? That will be epic! Will OPEC survive?
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
alutacontinua
#5013 Posted : Tuesday, November 15, 2016 9:56:27 AM
Rank: Member

Joined: 3/23/2011
Posts: 304
hisah wrote:
$/yuan fix back at levels last seen in 2008. The USD pegs are facing tremendous stress. Will the $/riyal peg fold? That will be epic! Will OPEC survive?


PBOC taking no prisoners

Injects 10B via 7-day reverse repos, 70B via 14-day reverse repos and 15B via 28-day reverse repos with more to come....

Markets are not reacting as violently as they did in January mainly due to the Trump victory

You dont have to be great to START but you have to start to be GREAT!!!!!!!!
RFE_20354
#5014 Posted : Tuesday, November 15, 2016 10:04:28 PM
Rank: New-farer

Joined: 7/4/2016
Posts: 18
I'm a novice when it comes to economics, so can someone please help me out with my thinking. Let me start off with a warning that this is a long post and my thoughts are all over.

Donald Trump has just become the next president of USA and looking at US/DXY the dollar has really surged, with experts warning us that we should brace for a strong bull under Trump. Looking at some of Trump's policies during the campaigns, i fail to see where real growth will come from.
1.) He definitely can't bring back manufacturing jobs from the likes of China and Mexico due to the low cost of production in those countries and even if he did they would become too expensive to export. We can therefore conclude that manufacturing expansion will be at a minimal.If he were to engage in trade wars with China, the US will be the victim as China is the single largest holder of US treasuries and if they were to damp them only God knows what would happen.

2.) He has promised tax cuts and less banking regulations. How does he plan on reducing debt to GDP ratio by doing that. The government will basically collect less in taxes. Every time a republican has taken over the oval office, the US economy shrinks(Reagan is an exception). The only winner here are the banks as they shall be able to report improved profits.

3.) By investing in infrastructure expansion, he would be creating thousands of jobs especially if he were to build the wall (though i wonder who will be the workers if Mexicans are locked out Laughing out loudly ). However their debt to GDP ratio is about 104% which clearly needs to be controlled if another recession is to be avoided. So how will the projects be financed?

USA is now becoming a services nation rather than a manufacturing one. Therefore the real winners here are banks and Wall Street. A strong dollar is not the best thing for US at the moment as it would hurt their exports and increase their trade deficit. In light of this, i'm i wrong in foreseeing a weaker economy come next year like in April once Trump's policies become clear and hence a weak dollar. With no meaningful growth in world economy and the rise of populism, the best thing is just holding cash or buying gold.
Is my thinking wrong in any way?

One more thing i forgot to ask. What are the capital inflows from companies repatriating their profits expected to be invested in other than treasuries? Does that really help real growth.
hisah
#5015 Posted : Wednesday, November 16, 2016 7:50:48 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
alutacontinua wrote:
FFR futures pricing an 89% chance for a December Rate Hike. DXY just touched 100.

If DXY takes out that 105 level, the bond market drama will likely trigger! Emerging markets Eurobond yields will spike badly. Weak currencies will get clobbered badly.

The USD will be a hated currency for all the pain it will be causing in the bond market...

Meanwhile some magicians are trying really hard to keep oil above $40. So funny. The next down leg will be interesting.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
lochaz-index
#5016 Posted : Thursday, November 17, 2016 8:11:43 PM
Rank: Veteran

Joined: 9/18/2014
Posts: 1,127
alutacontinua wrote:
alutacontinua wrote:
FFR futures pricing an 89% chance for a December Rate Hike. DXY just touched 100.


Pension Partners Rate Hike Odds:

Dec 16 - 86%
Feb 17 - 86%
Mar 17 - 88%
May 17 - 89%
Jun 17 - 93%
Jul 17 - 94%


With these kind of odds USD is aiming for infinity and beyond Laughing out loudly Laughing out loudly Laughing out loudly

The Fed has been writing cheques it can't cash. From a forecasted four rate hikes in 2016, now with one month to go till year end, none of them has materialized.

Yellen is cooking up some explanation about how the election has changed their economic perspective while in actual sense they have been playing catch up to the real interest rates.

Unlike the rate hike late last year where markets moved in anticipation of the hike, this time I think there is much more to the shifts than the Fed's expected policy action.
The main purpose of the stock market is to make fools of as many people as possible.
lochaz-index
#5017 Posted : Thursday, November 17, 2016 8:27:49 PM
Rank: Veteran

Joined: 9/18/2014
Posts: 1,127
hisah wrote:
alutacontinua wrote:
FFR futures pricing an 89% chance for a December Rate Hike. DXY just touched 100.

If DXY takes out that 105 level, the bond market drama will likely trigger! Emerging markets Eurobond yields will spike badly. Weak currencies will get clobbered badly.

The USD will be a hated currency for all the pain it will be causing in the bond market...

Meanwhile some magicians are trying really hard to keep oil above $40. So funny. The next down leg will be interesting.

As expected, even the good old KES has been showing signs of acting up during the last two weeks.

KE economy will be facing a lot of turbulence especially if a weak/weaker currency blows up debt to GDP ratio past the 70% mark.

Civil unrest 10.0 will make 2011 seem like child's play as a nasty anti-establishment mood kicks up a notch or two. Many incumbents will be taken to the gallows in the most dramatic of ways.

The current pace at which revolts are formenting against multi-national organizations signals that few of them will survive the coming storm.
The main purpose of the stock market is to make fools of as many people as possible.
alutacontinua
#5018 Posted : Thursday, November 17, 2016 9:50:35 PM
Rank: Member

Joined: 3/23/2011
Posts: 304
lochaz-index wrote:
hisah wrote:
alutacontinua wrote:
FFR futures pricing an 89% chance for a December Rate Hike. DXY just touched 100.

If DXY takes out that 105 level, the bond market drama will likely trigger! Emerging markets Eurobond yields will spike badly. Weak currencies will get clobbered badly.

The USD will be a hated currency for all the pain it will be causing in the bond market...

Meanwhile some magicians are trying really hard to keep oil above $40. So funny. The next down leg will be interesting.

As expected, even the good old KES has been showing signs of acting up during the last two weeks.

KE economy will be facing a lot of turbulence especially if a weak/weaker currency blows up debt to GDP ratio past the 70% mark.

Civil unrest 10.0 will make 2011 seem like child's play as a nasty anti-establishment mood kicks up a notch or two. Many incumbents will be taken to the gallows in the most dramatic of ways.

The current pace at which revolts are formenting against multi-national organizations signals that few of them will survive the coming storm.


https://twitter.com/keny...atus/799227932887511040

http://www.standardmedia...es-to-shore-up-shilling

Looks like CBK has already started currency intervention....think we will tap into the IMF emergency fund at some point next year???
You dont have to be great to START but you have to start to be GREAT!!!!!!!!
hisah
#5019 Posted : Sunday, November 20, 2016 4:11:36 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
The Emerging Markets' Dollar Problem

The EM bonds rout is going to be ugly as the rush for the exit doors intensifies. The USD dragon fire will roast a lot of currencies Sad
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
hisah
#5020 Posted : Monday, November 21, 2016 3:26:18 PM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
Nigeria Proposes Jail Time, Fines as It Tries to Boost Naira

Quote:
Nigeria plans to give the central bank more power to control capital flows and prevent foreign-exchange being taken out of the country, including jail time and fines for offenders as authorities battle a shortage of dollars.


Welcome to USD dragon madness central. A lot of stupid capital controls coming up as govts struggle to find USD to pay back their heavy debts.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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