US Dollar Continues To Strengthen On Speculation Of Mid-Year Rate Hike

There is no way, let me say that again, NO WAY that the Federal Reserve is going to raise rates mid-2015.

In fact I still do not believe it will happen at all this year.

Have a look at the chart below.

At this time we are in a global currency war, and in order for the US to compete unfortunately the Fed is going to have to act and quell the dollars strength at one point.

The strong dollars toll on multinational companies is already being seen in their revenue reports, and this will not only hurt these companies bottom lines, but it will also kill jobs.

The strong dollar continues to put pressure on commodities, (which are priced in US dollars), and this is going to increase strain on huge swaths of the global economy.

Again, the Federal Reserve will have to act.

For now I expect that the dollar strength will continue, but you can rest assured that there will be NO rate hike anytime soon.

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History Is Made As ECB Begins Full On QE: Enter A New Phase Of Currency Wars

In a very desperate move the ECB joined the ranks of the BOJ, the Federal Reserve, and the BOE in full on quantitative easing as they too become a lender of last resort.

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Of course this will not work, as you cannot fix any debt problem by adding monumentally more debt onto the issue which is debt itself.

This move by the ECB has now pushed the Euro to a multi-year low, and the global currency wars have now entered a new phase.

Any talks of the Federal Reserve raising rates anytime soon should now be met with laughter. We can now rest assured that the Federal Reserve will not be raising rates, but will soon begin to print more cash out of thin air than ever before to “compete” in this new phase of the war on currencies from within.