GOLDILOCKS
Current market trends and statistical analysis are indicating we have a growing economy with the expectation of an interest rate cut this summer.
You may be asking yourself, how is this happening? The market’s focus has pivoted away from from a focus on interest rates to a forecast earnings growth potential. If this continues, liquidity squeeze can be cut to a minimum.
This does not mean fallouts will not occur in some sectors of the market. It just simply means that our markets are adapting to new priced in behaviors expected as the year progresses.
Inflation has an effect on buying bonds inside various countries along with more demand for a country's products and interest rates. The last few years has been characterized as an adjusting of the above monetary mechanisms across all countries.
The IMF has been meeting with these countries and working on shifts in monetary policies that reflect a "Level Playing Field" in trade and opportunity for the Global Economy.
Article 4 is more than just changing a country's exchange rate. It is a change in the mechanisms and monetary policies that will help each country achieve new price actions across all sectors of their market. The World Trade Organization is still working on some of these changes.
Many of these changes are expected to formulate new price pressures in the second half of this year due to these fundamental shifts and the economic factors holding them back are falling away.
De-dollarization is only one factor that will create the much needed changes for a Global Currency Reset. It takes the coordination and involvement of all countries to create lasting change.
I have been watching the IMF work with countries for the last few years in developing their economy into network connections that will move their economy into a much higher level. Bilateral Trade Agreements have been signed throughout these past few years that will increase more demand on a country's products increasing the value of their currencies.
And now, Protocol 20 is advancing these new trade opportunities through the interfacing of networks on the digital financing system capable of making changes such as these a reality.
© Goldilocks
https://www.smartkarma.com/home/daily-briefs/daily-brief-macro-spendthrift-us-fiscal-policy-raises-ante-on-fed-to-prevent-financial-system-liquidity-squeeze-and-more/
https://www.cmegroup.com/education/courses/using-fundamental-analysis-when-evaluating-trades/fundamentals-and-fx-futures.html
https://www.schwab.com/futures/what-are-futures#:~:text=Futures%20are%20a%20type%20of,date%20for%20a%20set%20price.
No comments:
Post a Comment