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Cliff Wachtel
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Cliff Wachtel, CPA, is currently the Chief Analyst of anyoption.com, a leading binary options broker, and Director of Market Research, New Media and Training for Caesartrade.com, a fast growing forex and CFD broker. He is also the author of The Sensible Guide To Forex, and publisher of... More
My company:
anyoption.com
My blog:
Global Markets
My book:
The Sensible Guide To Forex: Safer, Smarter Ways To Survive & Prosper From The Start
  • DEBT WATCH: DAILY MONEY PRINTING WARNING HIGHLIGHTS 3 comments
    May 31, 2012 7:53 PM | about stocks: FXE, SPY, GREK, EWP, EWI, DIA

    IMF clarifies earlier story about SPAIN bailout-says talks strictly internal to the agency and a normal course of business. Who funds IMF rescue?

    EU paralyzed until Greek elections: can't help anyone-needs try act tough-push Greece to vote for bailout

    Capital outflow from Spain hit €66.2B in March, MOST since records kept -As in Greece, the big fear is that EUR deposits 2B converted into devalued local currency

    Ultimately, the EU's choice is to print money or die-we bet ECB prints, Fed too (maybe via IMF)-risks USD, EUR devaluation, and devaluation of any assets denominated in these, see thesensibleguidetoforex.com for low risk, simple ways to get diversify currency exposure SEE About tab for description, Reviews tab for advanced reviews.

    Your best defense against Bernanke stealing your money to fund debt payments, transfer $ from savers to spenders.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: FXE, SPY, GREK, EWP, EWI, DIA
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  • Cliff Wachtel
    , contributor
    Comments (1766) | Send Message
     
    Author’s reply » EU DEBT WATCH: daily update on mounting evidence of massive money printing coming that jeopardizes wealth of anyone overexposed to any one currency & referral to source on simple, low risk solutions
    31 May 2012, 07:55 PM Reply Like
  • rijkaard
    , contributor
    Comments (2) | Send Message
     
    Thanks Cliff. Could you please explain a bit about "transfer $ from savers to spenders"?
    1 Jun 2012, 03:13 AM Reply Like
  • Cliff Wachtel
    , contributor
    Comments (1766) | Send Message
     
    Author’s reply » rij,

     

    very short version: central banks print $, EUR, whatever, in order to pay down debts as a partial or full alternative to cutting entitlements, cutting aid to EU or other kinds of transfers, raising taxes or any other more politically unpopular option etc. Eventually the increased supply in cash relative to a more fixed supply of goods/services leads to inflation.

     

    admittedly this is a simplified version on a number of fronts,

     

    -not all gov spending to prop up the irresponsible, tho big chunks go to mismanaged nations, TBTF banks, social services we can't afford, etc.
    -inflation may not occur as long as economy struggles & wages stagnant (tho 1970s style 'stagflation' (which followed Nixon's disconnecting USD from gold) likely as EMs continue to drive up commodity prices as they are growing faster due to lower wage scale, etc)

     

    but that is the very likely end result if history is any guide

     

    sorry for superficial rush job, gotta go, just wanted to leave you w/ something. - sounding alarm because we mainstream investors can't make past mistake of being in just one currency, need diversify that exposure. The book is 3 years worth of research/thinking/writing on how to provide practical solutions that actually work for most of us - so that we don't have to take whatever watered down currency Bernanke, Draghi, etc decide to serve up.
    1 Jun 2012, 07:24 AM Reply Like
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