What has caused the U.S. dollar's currency exchange rate to be the strongest in twenty years? How a strong dollar leads to slower global economic growth and falling asset prices. Topics covered include: Why a strong dollar is a no-win situation for the rest of the world Why have inflation and interest rates increased Why recession risks are rising as central banks combat inflation Why asset prices fall when interest rates rise What would cause the U.S. dollar to weaken … [Read more...]
269 Plus: September 2019 Mid Month Update and How Eurodollar Futures Work
In Plus episode 269 for the week of September 21, 2019 we review the latest investment conditions such as market returns, recent economic releases and central bank actions. We also look at how Eurodollar futures can be used to speculate on Federal Reserve actions. … [Read more...]
260: Is This Why Interest Rates Are Falling and the Global Economy Slowing?
Has the offshore dollar market in terms of dollar financing and currency hedging gotten so big that it can dictate Federal Reserve monetary policy including the expected short-term interest rate cut by the Fed at its July 2019 open market committee meeting? In other words, has the Federal Reserve lost its ability to conduct monetary policy and control interest rates as it sees fit and is now in search of other tools? In this episode you’ll learn: Why the Federal Reserve is puzzled … [Read more...]