Monday, October 25, 2010

DOLLAR POT BLACK

By Annaly Capital Management

We attended a conference this week organized by the Grant, interest rate observer which is always a mixture of long and short and macroeconomic observations upside and lower investment ideas.This was no different, although if a theme could be gathered from it, this theme would be frustrated at how decision-makers nearing the global currencies and currency étrangères.La quote that resonated as cold in the face by Frank Byrd Fielder research and management, who recalled the assembled system "" we have never been here before - a global currency fiat zero diet linked to interest rates. ""

That we listened we returned to our blog post from last Friday , who examined the value of gold insurance inflationary worldwide.The facts on the ground are the dollar appears to lose its power purchase prices the market from the perspective of purchases of goods on a large scale by the Federal Reserve.All other things being equal, if does not change the capacity of the economy (such as United States) or supply of a product (such as gold), but the number of dollars develops, in this economy or commodity prices will rise $ .c ' is why rising gold, copper and actions, that what we expect generally. $below award draw us these assets in dollars and euros for their impressive rallies in September/October, as pink inflation expectations and the value of the dollar has fallen.

However is decreasing in euro terms.

The historic and famous rally in equities has been cleared.

Dr. copper semblance prognosis distributed to future growth increase is also flattened.

Transactions denominated in dollars the price that we saw in these assets since the beginning of September was less economic growth expected future real that there are potential future inflation a flood of newly printed dollars investor compensation. What happens to price risk assets if materialize this future inflation expected to raise the level of nominal price is interesting to consider question.

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