DislikedDoes anybody know what is going on with the JPY right now? Why is it so weak?Ignored
http://www.bloomberg.com/news/2012-0...d-qe-bets.html
here's an article regarding uj
Wooooohooooo or Boooooohooooo
EurAnalysis Kindergarten 24 replies
DislikedDoes anybody know what is going on with the JPY right now? Why is it so weak?Ignored
DislikedDoes anybody know what is going on with the JPY right now? Why is it so weak?Ignored
DislikedThanks guys. Decided to close out a few of my trades in the red... Doesn't look like it's going to stop anytime soon! JPY has been the weakest currency for 3 days straight.Ignored
DislikedThanks guys. Decided to close out a few of my trades in the red... Doesn't look like it's going to stop anytime soon! JPY has been the weakest currency for 3 days straight.Ignored
DislikedHello Gofer Pips.
And sorry for the late reply
Fourth sell, sl in the BE of the third sell.
Okay I understand the methodology, I just don't see your sma or levels on your posted chart that you are using,
If you want a sma i put a 200 sma in chart no problem, and the level to, but ..
i gave an explanation in other older post in how to fractal works.
i gave an explanation in other older post in how to determine the levels.
i gave an explanation in other older post in how fractal are useful for trade, to...Ignored
DislikedThanks guys. Decided to close out a few of my trades in the red... Doesn't look like it's going to stop anytime soon! JPY has been the weakest currency for 3 days straight.Ignored
That stopped the bank runs. The money supply reversed. It went ballistic. So did the monetary base.
The key event was therefore the Banking Act of 1933. After that, the money supply never fell again. After that, prices never fell again by more than 1 percent. That was in 1955.
All it took for prices to reverse and rise was this: an expansion of the monetary base coupled with bank lending.
Yet deflationists ever since 1933 have predicted falling prices. They die predicting this. Then their successors die predicting this.
They never learn.
They do not understand monetary theory. They do not understand monetary history. They therefore do not learn. They do not correct their bad predictions, year after year, decade after decade, generation after generation.
They still find people who believe them, people who also do not understand monetary theory or monetary history.
I have personally been arguing against them for four decades.
Price deflation has nothing to do with the fall in the price of stocks.
There can be monetary deflation as a result of excess reserves held at the Fed by commercial banks. But this is Fed policy. The Fed pays banks interest on the deposits. Even if it didn't, there would still be excess reserves. But by imposing a fee on excess reserves, the Fed could eliminate excess reserves overnight. Then the money multiplier would go positive, price inflation would reappear, and the Fed would get blamed. So, it maintains a policy of restricting the M1 multiplier.
Every inflationist says that monetary inflation will produce hyperinflation unless reversed by the central bank. There will be a return to low prices after what Ludwig von Mises called the crack-up boom. The classic example is Germany in 1934. That was a matter of policy. The central bank substituted a new currency and stopped inflating.
John Exter — an old friend of mine — argued in the 1970s and 1980s that monetary deflation has to come, despite Fed policy. There will be a collapse of prices through deleveraging.
He was wrong. Why? Because it is not possible for depositors to take sufficient money in paper-currency notes out of banks and keep these notes out, thereby reversing the fractional-reserve process, thereby deflating the money supply. That was what happened in the United States from 1930 to 1933.
If hoarders spend the notes, businesses will redeposit them in their banks. Only if they deal exclusively with other hoarders can they keep money out of banks. But the vast majority of all money transactions are based on digital money, not paper currency.
Today, large depositors can pull digital money out of bank A, but only by transferring it to bank B. Digits must be in a bank account at all times. There can be no decrease in the money supply for as long as money is digital. Hence, there can be no decrease in prices unless it is Fed policy to decrease prices. This was not true, 1930 to 1933.
Deflationists never respond to this argument by invoking either monetary theory or monetary history. You can and should ignore them until one of them does answer this, and all the others publicly say, "Yes. That's it! We have waited since 1933 for this argument! I was blind, but now I see! I'm on board! I will sink or swim with this."
Let me know when this happens. Until then, ignore the deflationists. All of them. (There are not many still standing.)
http://mises.org/store/Assets/ProductImages/SS628.jpg
The fact that a new deflationist shows up is irrelevant. Anyone can predict inevitable price deflation. They keep doing this. Look for the refutation of the inflationists' position. Look for a theory.
If you do not understand the case I have just made, you will not understand any refutation. In this case, just pay no attention to either side. If you cannot follow economic theory, the debate will confuse you. It's not worth your time.
http://www.actionforex.com/images/st...20120816a1.gif
A key event ahead in the month is Fed Chairman Bernanke's speech at Jackson Hole conference in August 31. Recent mixed to positive data from US dented the hope for Bernanke to announce anything significant in this traditionally important event. The markets are still leaning towards the case for Fed to do another round of easing. But that would require some substantially weak economic data to push Fed to act. The solid retail sales and job data in July did release much immediate pressure from the Fed.