User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Wednesday September 9, 2009 - 12:55:39 GMT
Black Swan Capital -

Share This Story:
| | Email

Dollar blues…Ugly policies…Hampered markets…Gold over $1,000

“Money is not an invention of the state. It is not the product of a legislative act. The sanction of political authority is not necessary for its existence.”
                   Carl Menger
FX Trading – Dollar blues…Ugly policies…Hampered markets…Gold over $1,000  
• Gold through $1,000
• Oil back over $70
• UN wants a new reserve currency
• China alarmed by US money printing
• Obama asks senate to increase debt ceiling
Boy, you know it’s bad when the UN gets into the act and people actually take them seriously.  
Is this a crystallized negative sentiment extreme in the dollar?  We will only know that with the gift of hindsight of course, but there may be more to go given how nicely government policies seemed aligned to prolong the down turn.  Plus, there is another 10% or so left on the downside before the dollar tests its old low made back in March 2008.  
The stuff we are seeing and hearing is likely to concern even the most ardent dollar supporter.  Maybe we saw a lot of them capitulate yesterday.  A friend of mine from Chicago emailed, he said take a look at the volume in the UD dollar index; it’s huge!  Does it mean anything?   
So to the chart I went.  Sure enough, it was huge.  You can see it at the bottom of the daily dollar index chart below. [Chart not available in text format.]

One of the ardent dollar bull themes has been that China will disappoint (we know that because it has been a key theme of ours that hasn’t panned out).  It looks like China will be China and do all they can and want to keep the music playing; we know they have the money to do so.  That may be the dollar game changer, in that a major risk bid to help the buck won’t materialize.  
Not that we give the US administration (this or any other) much credit the orderly dollar decline we’ve seen since the US dollar index hit 90.  But we wonder if the Treasury isn’t just fine with the shape of the dollar move; the dollar does play the key role of liquefying global assets (the role of a global reserve currency).  
In more sane times, assuming there were such, leaders of a country cared about the quality of their currency knowing it reflected a store of wealth, not just paper to increase their political power through spending.  Many US administrations in a row seem to have had no concerns about any of that; the current one however takes the cake.  
In the midst of a dangerous period for the US economy and dollar, the current administration wants to completely radicalize the US economy (healthcare change), add regulation, and increase taxes.  It is almost hard to believe.  Thus, it is no surprise why Switzerland supposedly displaced the US as the most competitive economy according to the World Economic Forum Global Competitiveness Report published yesterday— another piece of negative dollar sentiment we forgot to list above. 
Austrian School economist Murray Rothbard wrote a book called America’s Great Depression. It was published in 1963. It is for my money the best single source of analysis that gives one a real understanding of why the Great Depression became the Great Depression.  
It explodes the ridiculous fallacies of all the Keyenesian lovers and neo-Keynesian pseudo intellectuals, read Paul Krugman, who seem too deep-down hate the market and find government control so much more appealing and comforting.  In other words the Keynesian’s (not to suggest this was Keynes reasoning; jury out there) seem to love power of spending and market manipulation. 
Government spending; its’ a phrase that still rings in my ears…  
When I was in graduate school a long time ago, I had a very interesting, smart, lively, and entertaining free-market professor of economics.  A rarity indeed!  His name was Dick Armey.  Professor Armey moved on to be Republican leader in the House (very quickly), I think.  Prof. Armey was a master at exploding the leftist clap-trap regarding economics.  He was fun to watch.  One thing he used to always say to us in class was this: Taxes moves money but spending moves resources. Not I am beginning to understand it.  
Government spending on the scale we are seeing moves resources in a big way and creates all types of market price inefficiencies.  Plus, almost all of government spending represents consumption, not investment.  And in the midst of depression, it is savings and investment that are keys to recovery, not consumption as the Keynesian School touts; and yes, sadly we are all Keynesians now.  
Saving and investment create wealth.  Period!  The two are joined at the hip.  Yet Keynes believed one can magically separate the two, for some reason—I guess it fit in the General Theory equation.  It was a bad mistake that has cost us many years of disastrous government economic policy and provided cover for statists everywhere. 
But back to Mr. Rothbard, and an example of government policies that significantly prolonged the Great Depression by hobbling the market’s regeneration qualities:
1) Prevent or delay liquidation.  Lend money to shaky businesses, call on banks to lend further, etc.
2) Inflate further.  Further inflation blocks the necessary fall in prices, thus delaying the adjustment and prolonging the depression. 
3) Keep wages up.  Artificially maintenance of wage rates in a depression insures permanent mass unemployment. 
4) Keep prices up.  Keeping prices above their free-market levels will create unsalable surpluses, and prevent a return to prosperity. 
5) Stimulate consumption and discourage savings.  We have seen the more saving and less consumption would speed recovery; more consumption and less saving aggravate the shortage of capital even further.  As a matter of fact, any increase in taxes and government spending will discourage saving and investment and stimulate consumption, since government spending is all consumption.  Some of the private funds [taxed away] would have been saved and invested; all of the government funds are consumed. 
Hmmm…and we wonder why the so-called stimulus isn’t providing much traction and why many see a double-dip ahead! It is to laugh if it weren’t so sad.  
Faith in dollar is becoming hard to muster when you consider the current set of policies seem designed to lock the US into years of inefficiency and below potential growth.  The only saving grace, and it’s no panacea, is that US policy will be “out Keynesian-ed” by its competitors.  Not something to wish for I know.  
This currency game has always been a game of choosing the least ugly.  And a whole bunch of ugly we are getting.  Maybe in that light, gold over $1,000 should not be a surprise.  
Jack Crooks 
Black Swan Capital LLC  


Forex Trading News

Forex Research

Daily Forex Market News
Forex news reports can be found on the forex research headlines page below. Here you will find real-time forex market news reports provided by respected contributors of currency trading information. Daily forex market news, weekly forex research and monthly forex news features can be found here.

Forex News
Real-time forex market news reports and features providing other currency trading information can be accessed by clicking on any of the headlines below. At the top of the forex blog page you will find the latest forex trading information. Scroll down the page if you are looking for less recent currency trading information. Scroll to the bottom of fx blog headlines and click on the link for past reports on forex. Currency world news reports from previous years can be found on the left sidebar under "FX Archives."

Actionable trading levels delivered to YOUR charts in real-time.

Register To Test Your Amazing Trader

GVI Trading. Potential Price Risk Scale
AA: Major, A: High, B: Medium

Tue 17 July 2018
AA 08:30 GB- Employment
A 13:15 US- Industrial Production
AA 14:00 US-Powell Testimony
Wed 18 July 2018
AA 08:30 GB- CPI
A 12:30 US- Housing Starts/Permits
AA 14:00 US-Powell Testimony
Thu 19 July 2018
AA 1:30 AU- Employment
AA 08:30 GB- Retail Sales
A 14:30 US- EIA Crude
A 12:30 US- Weekly Jobless
Fri 20 Jun 2018
A 12:30 CA- CPI/Retail Sales

John M. Bland, MBA
co-founding Partner,

Global-View Affiliate Program

We are starting an affiliate program to market some of our products.

Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.

Put the word "affiliate" in the email subject line.

Contact us

Start trading with forex broker Markets Cube

Max McKegg's Daily Forex Trading Forecasts

Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.

Request a TRIAL of Max's Forex Service.


Retail Forex Brokerage Changing!

Are you looking for your first broker or do you need of a new one? There are more critical things to consider than you might have thought.

We were trading long before there were online brokers. Global-View has been directly involved with the industry since its infancy. We've seen everything and are up-to-data with recent regulatory changes.

Our Best Brokers listing section includes:Forex Broker Reviews, Forex Broker Directory, Forex Broker Comparisons and advice on How to Choose a Forex Broker

If would like guidance, advice, or have any concerns at all ASK US. We are here to help you.

SEE Our Best Brokers List

Currency Trading Tools

  • Live rates, currency news, fx charts. 

  • Research reports and currency forecasts.

  • Foreign Exchange database and history.

  • Weekly economic calendar.

Directory of  Forex trading tools

Terms of Use    Disclaimer    Privacy Policy    Contact    Site Map

Forex Forum
Forex Trading Forum
Forex Forum + forex rates
Forex Forum Archives
Forex Forum RSS
Free Registration

Trading Forums
Currency Forum Guide
Forum Directory
Open Forum
Futures Forum
Political Forum
Forex Brokers
Compare Forex Brokers
Forex Broker News
Forex Broker Hotline

Online Forex Trading
Forex Trading Tools
Currency Trading Tools
Forex Database
FX Chart Points
Risk/Carry Trade Chart Points
Economic Calendar
Quicklinks to Economic Data
Currency Futures Swaps
Fibonacci Calculator
Currency Futures Calculator

Forex Education
Forex Learning Center
FX Trading Basics Course
Forex Trading Course
Forex Trading Handbook

Forex Analysis
Forex Forecasts
Interest Rate Forecasts
Central Bank Forecasts

FX Charts and Quotes
Live FX Rates
Live Global Market Quotes
Live Forex Charts
US Dollar Index Chart
Global Chart Gallery
Daily Market Tracker
Forex News
Forex Blog
Forex News
Forex Blog Archives
Forex News RSS
Forex Services
Forex Products
GVI Forex
Free Trials
FX Bookstore
FX Jobs and Careers
Jobs USA
Jobs UK
Jobs Canada

Forex Forum

The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.

Forex News

The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.

Currency Trading

Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by

Forex Brokers

The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.

Forex Trading

Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.

FX Trading

Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.

Forex Blog also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.



By using this website, you are agreeing to our Privacy Policy and Terms of Use, and Cookie Policy

Copyright ©1996-2014 Global-View. All Rights Reserved.
Hosting and Development by Blue 105