A strengthening dollar is depressing gold – Equities are getting a boost

The dollar is strengthening and geopolitical risk is priced in (or ignored), effectively depressing the price of gold.

Perceptions of risk are declining.

The markets are up on a Monday. Has anything changed? Or, has the news cycle simply turned over?

Jackson Hole announcements are Wednesday. American slow-growth fundamentals are present and shaky. The EU is looking at a cold economic winter.

Uh Oh – That’s No Good

Bloomberg is reporting

Ukraine Says It Destroyed Part of Armed Convoy From Russia
By Daryna Krasnolutska and Scott Rose
August 15, 2014 11:14 AM ED

GDP, CPI, QE and a Rainbow

1. GDP numbers are misleading. The wild swings of the last two quarters, taken together with Everyman’s experience, should be sufficient indicator that they are not trustworthy.

2. Inflation has been occurring in equities and elsewhere. It is a monetary phenomenon and despite CPI manipulation, the effect is beginning to appear in inescapable ways.

3. QE is coming to an end and interest rates will rise.

Doomsday Planning

I’m hardwired to be anxious when things don’t quite make sense, and I’ve been bothered for a few months by some events that didn’t quite gel until today.

To begin with, on April 3rd, I postulated half-jokingly that Ebola could be the unexpected event which upsets the American apple cart of economics.

The dollar is strengthening; the market is wobbly

Ms. Market doesn’t know whether to keel over or not.

She’s been partying for a while and the headache is there, but can she shake it off?

It’s interesting that the S&P is out of sync