US and California

From now on, we are distinguishing California from the rest of the US. The three largest economies of the world are: China, Japan, and California.

California, for now, uses the US $ as a currency. That is unfortunate for California.

The US $ is weak because the US has a weak economy. That fact may not change any time soon. The US $ can be made even more weak, but it will not help the ROA = Rest of America.

And, of course, the term weak means weak as in unable to succeed in competition. You can trade on Forex or SP, it's all the same thing for now.

Currency War - Round 6

China has increased interest rates seemingly to appease the US Fed who has been ragging on the Chinese for months now. The move has fooled the Forex traders for the past two days.  Unfortunately for the Fed, who would love to see massive inflation in China, China is smart enough to control inflation without losing the trade battle.

Watch out for US labor interests holding down the $ vs. Yen and Euro. Those forces will be over-run. 

Who bought the NVDA Quants today?

Precisely starting at 2:15pm. Wasn't us. But we know who it was. We're not certain why though. In case you know the reason, please send us a note.  :)