The signs of deflation are now flashing all over the globe. In our estimation, the possibility of an associated financial crisis is now dangerously high over the next few months.
As we’ve been saying for a while, our preferred model for how things are going to unfold follows the Ka-Poom! Theory as put out by Erik Janszen of iTulip.com.
That theory states that this epic debt bubble will ultimately burst first by deflation (the “Ka!”) before then exploding (the “Poom!”) in hyperinflation due to additional massive money printing efforts by frightened global central bankers acting in unison.
First an inwards collapse, then an outwards explosion. Ka-Poom!
We’ve been tracking the deflationary impulse for a while, and declared deflation the winner back in July of this year. Continue reading
Charlie Chan, a former Credit Suisse Group AG proprietary trader who now runs his own hedge fund, reduced bets the dollar will strengthen and added trades that would profit from a decline.
Chan said he trimmed his fund’s long dollar position versus the yen last week after the U.S. currency’s rally stalled following gains of more than 10 percent in each of the past three years. He’s now betting the greenback will weaken against Asian currencies including Singapore’s dollar, South Korea’s won and India’s rupee, the founder of Singapore-based Charlie Chan Capital Partners said.
Iran’s central bank has announced that it will stop mutual settlements in the US dollar with other countries, with the Chinese yuan or renminbi being named as one of the alternatives. Continue reading
The agreement will ease the implementation of the preferential trade deal signed between Iran and Turkey last year
TEHRAN, January 25. /TASS/. Tehran and Ankara are “working on a plan” to use their national currencies in bilateral trade exchanges, the Fars news agency reported on Sunday citing Iran’s Ambassador to Turkey Alireza Bigdeli. Continue reading
MOSCOW, January 24 (Sputnik) – Iran no longer uses the US dollar in foreign trade transactions, replacing it with other currencies, the deputy governor at Iranian Central Bank told the Tasnim News Agency Saturday. Continue reading