The Federal Reserve Bank’s lack of action to backup their bullish dollar comments appears to be sending a "flash point" signal to the worldwide credit markets. Since last year I have been warning of a financial storm that could wreak havoc in the global markets. The hurricane warning flags are now being posted:
Barclays warns of a financial storm as Federal Reserve’s credibility crumbles
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/27/cnbarclays127.xml
and
RBS issues global stock and credit crash alert
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/18/cnrbs118.xml
With last week’s notable recovery of the gold price and the Dow Jones Industrial Stocks pushing into Bear territory, Wall Street may be confirming what the British have alerted their clients to. In itself, sending a subset of global investors into flight may cause the entire herd of elephant size investors to run for the hills.
Oil has responded to the U.S. Dollar’s lack of support by trading at $143. $170 is now in view.
Gold, Silver, Oil, Natural Gas, Swiss Franc, Euro, etc. are all alternatives to holding dollars. You have been alerted!