Meet the dollar vigilantes

Meet the dollar vigilantes

Editor: Vlad Rothstein | Tactical Investor

Before we get to the article at hand many might ask why we cover political and health issues when our main focus in the stock markets and the financial arena.  The short and simple answer is that all these fields are connected; we don’t have free market forces anymore. Everything is manipulated; from the food, you eat to data you are provided.

 If you are aware of this you can plan accordingly. Identifying the problem is over 80% of the solution and this is why most people don’t know what to do because they don’t really understand the problem. Now you know why we are the only financial website that covers such a wide array of topics that on the surface appear to be unrelated but are in fact, deeply interwoven.  Mass psychology is a very powerful tool and if employed correctly can help you spot the grotesque levels of manipulation the masses are subjected to. We strongly suggest that you view or read or view Plato’s allegory of the cave.  You might also find the following article to be of interest:

Our hats off to the German defence minister, Leyen for standing up to the House of Saud Bandits. After all these guys drink, fornicate with porn stars, take drugs and do everything that goes against Islam and then they have the nerve to instil such harsh laws.  If the punishment for breaking these laws was enforced, every single prince would be dead or jailed by now.  Thus it is clear, that their only objective is to create division and promote radical Islam in the hopes of fostering unrest all over the world. After oil, terrorism is the biggest export from Saudi Arabia. Keep. German Defence minister Insults Saudia Arabia-Refuses to wear Hijab

One way or another – interest rates are going up. The Fed and/or markets will see to that. The dollar is going to be de-valued. The dollar vigilantes will see to that.

First – some history. In the early 1990s, so-called “bond vigilantes” threatened to sell U.S. government bonds in the face of exorbitant spending plans by the Clinton Administration that would have significantly increased the national debt. There were political repercussions.

From late 1993 to late 1994, the ten-year Treasury note climbed from roughly 5% to 8% in a selloff . That led to a Republican takeover of the House of Representatives, the first time in forty-two years. Clinton’s plans were halted because borrowing costs were too high.

Now America’s national debt is over 105% of Gross Domestic Product, much higher than in 1994. With no economic growth to speak of these past eight years, inflation has been subdued.

However – Trump’s planned tax cuts and regulatory reform will spur economic growth, but also fan inflation. A week after he was elected, the ICE U.S. dollar index hit its highest level since 2003. A month after the election, the dollar had strengthened 4.3% versus the Euro, and the recent 25 basis point hike by the Fed, while not much, can only make the dollar more attractive. Despite all of this, though, the rally in the dollar is a mirage. Full Story

One of the inspirations for our name, The Dollar Vigilante, was what used to be called the Bond Vigilantes.

Last seen in full force in the inflationary early 1980s, bond vigilantes were anti-establishment figures who were said to have rebelled. They had decided to keep central banks and governments honest by raising long term interest rates in the open market. They would do so whenever the authorities kept their own interest rates too low, or let budget deficits grow out of control.

It was in 2010 that I overheard the term “bond vigilante” on a radio program once again and laughed for a moment, saying in my own head, Ah, yes, with interest rates at near zero or negative percent, Quantitative Easing to infinity and budget deficits in the US stretching the boundaries of belief, where are the bond vigilantes now?

And I thought to myself, I guess the system is so far out of control now that you can’t sell bonds to keep central banks or government under control as they’ll just print up unlimited money to keep buying it.

I then had an epiphany and told myself, “What we need today are dollar vigilantes!”

That’s what started this all…

In a sense, George Soros is a fellow dollar vigilante. An outsider who once tried to break the system… and he did. Full Story

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