Precipice of a Major Decline

The Rogers Raw Materials (commodities) registered a 2.47% gain last week. That caused me to take a look at my Inflation Deflation Watch which I had not been paying close attention to. And wouldn’t you know it! It has now hit a new high at 169.03! Central bankers are really getting good at playing the role of Pinocchio as the Fed exercised their “whatever-it-takes” fraudulent money-creating scheme in March. Commodity inflation certainly seems to be in keeping with Michael Oliver’s work on commodities as well as the dollar which his momentum work suggests is sitting on the precipice of a major decline.

I don’t think there is any doubt but that the dollar’s days are numbered or at least in decline. As reported by Alexandre Tanzi of from Bloomberg this week, “The euro was the most used currency for global payments last month, the first time it has outpaced the dollar since February 2013. Data from the Society for Worldwide Interbank Financial Telecommunications, which handles cross-border payment messages for more than 11,000 financial institutions in 200 countries, showed the European Union’s single currency and the greenback were followed by the British pound and the Japanese yen. The Canadian dollar overtook China’s yuan for the fifth spot, Swift said.

About Jay Taylor

Jay Taylor is editor of J Taylor's Gold, Energy & Tech Stocks newsletter. His interest in the role gold has played in U.S. monetary history led him to research gold and into analyzing and investing in junior gold shares. Currently he also hosts his own one-hour weekly radio show Turning Hard Times Into Good Times,” which features high profile guests who discuss leading economic issues of our day. The show also discusses investment opportunities primarily in the precious metals mining sector. He has been a guest on CNBC, Fox, Bloomberg and BNN and many mining conferences.