Strong is good.
Strong earnings. Strong sales. Strong demand. Strong orders. These all paint a picture of economic growth, which is good for the country.
But when it comes to the U.S. dollar in a global market... strong is a problem.
The U.S. dollar has been on a tear recently, soaring higher against the other major currencies so that the U.S. Dollar Index is now up 4.3% in 2016. While that doesn't sound like much when you look at the Dow Jones Industrial Average, which has enjoyed a double-digit gain this year, you have to remember that currencies don't make huge moves. At least, they normally shouldn't.
Now the dollar is nearing parity with the euro, which has its own basket of troubles as the union threatens to pull apart at the seams. Currency analysts at Deutsche Bank are actually calling for the euro to trade below parity with the dollar in 2017, falling to $0.95.
But a strong dollar means that U.S. goods sold overseas are now more expensive, making them less competitive with local goods. Companies are either faced with slashing their prices overseas to stay competitive - which results in less revenue - or keeping their prices unchanged and risking fewer sales. Either way, the picture isn't good.
Multinational corporations are going to see their earnings squeezed even further in the coming quarters as their foreign sales take a hefty hit.
And the dollar's strength is unlikely to wane anytime soon. The Fed's interest-rate hike just made the dollar more attractive, increasing demand. The Fed has said that it's looking to raise rates three times in 2017 - not that I'm actually looking for that to happen. Remember that the Fed stated at the start of this year that we'd see four rate hikes.
The latest economic reports showed some nice strength, but if the U.S. dollar continues its climb against the other currencies of the world, we could see our multinational companies flounder... triggering an economic collapse.
The Fed may be choosing to ignore the data right in front of it, but you can't. The center cannot hold. This economy will soon fall apart. But you don't have to let your wealth get crushed under the rubble. That doesn't mean you need to stuff all your cash under your mattress for safekeeping. You can take steps now to not only protect your wealth from the coming collapse, but even position yourself to profit as well.
As the Senior Managing Editor for The Sovereign Investor Daily, Jocelynn handles the day-to-day operations for bringing you the Sovereign team's daily insight. She has spent over a decade working as an editor for financial publications. A former trader, Jocelynn has spent 15 years in the financial industry.
By Jocelynn Smith
Riders On The Storm
In today's chaotic world one can relate to the Doors rendition of "Riders On The Storm". We as a society especially after the Trump election victory that's if you can call it that, precludes that we all are riders on a storm. A storm of unimaginable upheaval in the world around. I can remember a time back in the late 60's when Vietnam tore this nation apart. The song that set the tone of that period was "Riders On The Storm". Now today the mood is almost the same when the unexpected occurred with Trump winning the Presidency.To quote the lyrics of that song is as symbolic as it was back then as it is today. "Riders on the storm, into this house we're born, into this world we're thrown, like a dog without a bone, an actor out alone." As profound as these lyrics are they have had a resiliency that depicts history repeating. The times have changed the bit players are new but the general theme of discontent that has invoked a national consciousness to rally around the wrongs against society whether it was Vietnam or the election of Trump remains the same.
We are all riders on the storm. With apprehension, worry and dismay we grudgingly await each day to a realm of reality far removed from the times of just yesterday. The sheer shock that has settled in is an irreversible reality. It has already affected the moral fiber of our whole society. Like Limburger Cheese the aroma that has now permeated from this Presidential election has spread into every pore of our nation today.
It is not too well known that the United States is the only democratic republic that has two sets of criteria in choosing the head of state. And, in America today that head of state is the President. The Electoral College that was established when our founding fathers framed the Constitution wanted to safeguard this new nation from becoming a monarchy or becoming a totalitarian state. The Electoral College originally was set up to thwart tyranny of the majority. In doing so they incorporated rules that align themselves with the requirements for treaties to be ratified. With today's Presidential outcome where the majority of the voters chose Clinton over Trump but the Electoral College over ruled the popular vote questions have now surfaced. Is the electoral college in violation of majority rule?
Since 2000 the electoral college has overturned and over ruled the popular vote which allowed the minority to succeed in selecting the President. As a result the electoral college didn't prevent tyranny of the majority but instead provided the gateway for tyranny of the minority. What this past election says is that the electoral college chose a candidate supported by just one particular social group over not only the majority of voters but also over the vast number of minority interests in the country.
We are all riders on this post election storm. It can be arguably said that the Electoral College violates political equality and popular choice. The perverse consequences of this Electoral College has now become the exact opposite of what our founding fathers initiated. It has not protected American democracy from tyranny of the majority it has only allowed tyranny of the minority. And until we understand this and correct the huge flaw in our democratic process we will continue to be riders on the storm.
By Dr. Tim G Williams
We are all riders on the storm. With apprehension, worry and dismay we grudgingly await each day to a realm of reality far removed from the times of just yesterday. The sheer shock that has settled in is an irreversible reality. It has already affected the moral fiber of our whole society. Like Limburger Cheese the aroma that has now permeated from this Presidential election has spread into every pore of our nation today.
It is not too well known that the United States is the only democratic republic that has two sets of criteria in choosing the head of state. And, in America today that head of state is the President. The Electoral College that was established when our founding fathers framed the Constitution wanted to safeguard this new nation from becoming a monarchy or becoming a totalitarian state. The Electoral College originally was set up to thwart tyranny of the majority. In doing so they incorporated rules that align themselves with the requirements for treaties to be ratified. With today's Presidential outcome where the majority of the voters chose Clinton over Trump but the Electoral College over ruled the popular vote questions have now surfaced. Is the electoral college in violation of majority rule?
Since 2000 the electoral college has overturned and over ruled the popular vote which allowed the minority to succeed in selecting the President. As a result the electoral college didn't prevent tyranny of the majority but instead provided the gateway for tyranny of the minority. What this past election says is that the electoral college chose a candidate supported by just one particular social group over not only the majority of voters but also over the vast number of minority interests in the country.
We are all riders on this post election storm. It can be arguably said that the Electoral College violates political equality and popular choice. The perverse consequences of this Electoral College has now become the exact opposite of what our founding fathers initiated. It has not protected American democracy from tyranny of the majority it has only allowed tyranny of the minority. And until we understand this and correct the huge flaw in our democratic process we will continue to be riders on the storm.
By Dr. Tim G Williams
The Global Health Crisis
In no other time in the history of the United States has our population attained the dubious distinction that as a nation we spend the most on health care and yet are one of the least healthiest of all the industrialized world. It can be arguably said that the greatness of a nation and it's ability to leave a lasting legacy lies in the health of it's people. For over two hundred years the United States achieved greatness not just because of it's military might but on the health and well being of it's citizens. Since the last quarter of the 20th century there has been a major assault on the health of this nation. It can't be more evident when we look at what is actually happening to too many citizens of the United States.
In the last 60 years we have seen many marvels of technology, medicine, and science come into play. But, with all the marvels of the age too many people are succumbing to too many preventable diseases and ailments. It seems along with Global Warming every year there continues to be a steady increase in preventable diseases and ailments. There has been steady increases in all forms of cancer, diabetes, Alzheimer's, dementia, obesity and even birth defects. Let's not forget all the other ailments that many are associated with these diseases. Almost all of these illnesses and inflictions can be prevented.
One has to question why this is happening with all the medical technologies and marvels there are. It is as though there is a full scale assault on the health and stability a country that is considered to be the most advanced country on earth. If we take a close look back at the way things were 60 years ago especially with the food we ate you can't help come to the conclusion that as a nation the United States was a much healthier nation compared to today. The biggest factor to consider even though life expectancy was a little lower than today generally speaking we actually were healthier. Sure, people developed cancer, people had dementia and Alzheimer's, and yes many had diabetes. There were overweight individuals as well. But, all of these developments whether they were full blown diseases, aliments or conditions or not the numbers don't even come close to the skyrocketing increases we are seeing today.
One of the biggest culprits in contributing to the steady decline of the nations health comes from the industrialization of the food we consume. Sure, there have been strides to improve the quality of food sources, but it is the corporate farming industry that continues to mount an aggressive campaign to corner the markets sort of speaking in regard to the supply of food available for the overall populations consumption.
Not too many people even realize that the FDA has been an unwitting accomplice in contributing to the deteriorating health of the population of the United States. The scientific community has found that many additives, preservatives and supplements that are injected or added to many of the foods we consume are cancer causing carcinogens. One supplement in particular is Folic Acid. Let's not confuse this supplement with the natural Folic Acid found in many of the fresh foods. But, this supplement that is added to so many of the process foods is a detriment to everyone's health. This is just one example of the monumental amount of supplements, additives, and preservatives that are processed and not natural that is purposely put in the foods we all consume.
To further understand why as a nation we are faced with a full blown health crisis is to take a look at pharmaceutical industry, Monsanto Corporation, to the medical community and health care providers all are getting rich at the expense of the health of our citizens. Sixty years ago we still had local independent family farming communities which supplied the local population with abundant fresh nutritious food. Farms back then practiced crop rotations thereby giving the soil enough time to replenish the nutriments that are a vital source of the nutritious food we all consumed.
What we are experiencing here in the United States is part of a global health crisis. This global health crisis is all attributed to fresh water shortages, lack of sanitation and decreasing nutritious food sources. Every country rich or poor is affected by this growing health crisis. Today, the whole world is faced with the reality of a global nutritious food shortages along with depleting supplies of fresh water. In many parts of the world already are facing acute food and water shortages. Even here in the US a growing number of people face horrific starvation, lack of fresh water and poverty everyday. Just this past year the humanitarian catastrophe in Lake Chad where conflict has left over 8 million people facing acute starvation failed to get everyone's attention. In Yemen famine is already a harsh reality. In that part of the world the UN Secretary-General has stated and fears that genocide will take over through-out the region. All because of the lack of potable fresh water and acute shortages of food. With civil wars raging in Syria and Iraq along with the global refugee crisis the disaster in Lake Chad is said to be on an epic scale of biblical proportions with terrifying rates of child malnutrition.
The greatest concern is that around the world at least 80% of the earths farmable land is already under productive, and of this 80% 40% is so severely depleted due to extensive chemically based farming practices. Compounding this dilemma is the increasing dependence on hybrid varieties. In actuality they don't have nearly the capacity to self-replenish due to the fact that these hybrid food sources were designed using chemicals. Added to all of this is the continuing escalation of energy prices. The rotation of crops a direct link to enriched food sources really haven't been used for the past 60 years. This leaves the land so worn out whatever food is harvested is extremely weak if not completely void in vitamins and minerals that are essential for the bodies overall health.
With corporate farming where the bottom line is all that matters here in the United States and it can be said all around the globe the available soil that is the base for our food sources has been steadily over cultivated for the past 60 years. Over farmed to the point that the nutrients and minerals that are essential for healthy crops are completely missing. Consequently, the Honey bees are dying off because the soil hasn't had time to replenish itself. This is devastating to the Honey Bees and to humanity. The Honey bees are now more susceptible to viruses, mites and pesticides. This is the greatest cause as to why the Honey Bees are vanishing.
With the decline of the Honey Bee and the farming practices that corporate farms continue to use along with the GMO food sources that Monsanto produces the health of nations remains in jeopardy. And until we realize that local independent farming where proper techniques are used like crop rotation and put in place fresh water transfer technologies where everyone has abundant fresh water the health crisis we are facing today will only get worse.
Just this past year over 45% Honey Bee colonies were killed off. Millions poisoned by insecticides spraying for Zika. Other insecticides such as Bayer and Syngenta keep flooding our farmable land here in the US with toxins that have been known to wipe out bee colonies. They are still the most widely used pesticides in the country. Many other parts of the world also continue to use these bee killing pesticides.
The future of humanity rests with the action to protect not only the survival of the Honey Bee but action to stop the horrific carnage that is sweeping terror all over the world. As for the future of the Honey Bee if our newly elected President continues to ignore science the health of not only this nation but that of the world is in grave danger. Again, like Global Warming to ignore it's existence the health crisis facing the world today will only get much worse. And that is a scenario to horrific to contemplate.
In the last 60 years we have seen many marvels of technology, medicine, and science come into play. But, with all the marvels of the age too many people are succumbing to too many preventable diseases and ailments. It seems along with Global Warming every year there continues to be a steady increase in preventable diseases and ailments. There has been steady increases in all forms of cancer, diabetes, Alzheimer's, dementia, obesity and even birth defects. Let's not forget all the other ailments that many are associated with these diseases. Almost all of these illnesses and inflictions can be prevented.
One has to question why this is happening with all the medical technologies and marvels there are. It is as though there is a full scale assault on the health and stability a country that is considered to be the most advanced country on earth. If we take a close look back at the way things were 60 years ago especially with the food we ate you can't help come to the conclusion that as a nation the United States was a much healthier nation compared to today. The biggest factor to consider even though life expectancy was a little lower than today generally speaking we actually were healthier. Sure, people developed cancer, people had dementia and Alzheimer's, and yes many had diabetes. There were overweight individuals as well. But, all of these developments whether they were full blown diseases, aliments or conditions or not the numbers don't even come close to the skyrocketing increases we are seeing today.
One of the biggest culprits in contributing to the steady decline of the nations health comes from the industrialization of the food we consume. Sure, there have been strides to improve the quality of food sources, but it is the corporate farming industry that continues to mount an aggressive campaign to corner the markets sort of speaking in regard to the supply of food available for the overall populations consumption.
Not too many people even realize that the FDA has been an unwitting accomplice in contributing to the deteriorating health of the population of the United States. The scientific community has found that many additives, preservatives and supplements that are injected or added to many of the foods we consume are cancer causing carcinogens. One supplement in particular is Folic Acid. Let's not confuse this supplement with the natural Folic Acid found in many of the fresh foods. But, this supplement that is added to so many of the process foods is a detriment to everyone's health. This is just one example of the monumental amount of supplements, additives, and preservatives that are processed and not natural that is purposely put in the foods we all consume.
To further understand why as a nation we are faced with a full blown health crisis is to take a look at pharmaceutical industry, Monsanto Corporation, to the medical community and health care providers all are getting rich at the expense of the health of our citizens. Sixty years ago we still had local independent family farming communities which supplied the local population with abundant fresh nutritious food. Farms back then practiced crop rotations thereby giving the soil enough time to replenish the nutriments that are a vital source of the nutritious food we all consumed.
What we are experiencing here in the United States is part of a global health crisis. This global health crisis is all attributed to fresh water shortages, lack of sanitation and decreasing nutritious food sources. Every country rich or poor is affected by this growing health crisis. Today, the whole world is faced with the reality of a global nutritious food shortages along with depleting supplies of fresh water. In many parts of the world already are facing acute food and water shortages. Even here in the US a growing number of people face horrific starvation, lack of fresh water and poverty everyday. Just this past year the humanitarian catastrophe in Lake Chad where conflict has left over 8 million people facing acute starvation failed to get everyone's attention. In Yemen famine is already a harsh reality. In that part of the world the UN Secretary-General has stated and fears that genocide will take over through-out the region. All because of the lack of potable fresh water and acute shortages of food. With civil wars raging in Syria and Iraq along with the global refugee crisis the disaster in Lake Chad is said to be on an epic scale of biblical proportions with terrifying rates of child malnutrition.
The greatest concern is that around the world at least 80% of the earths farmable land is already under productive, and of this 80% 40% is so severely depleted due to extensive chemically based farming practices. Compounding this dilemma is the increasing dependence on hybrid varieties. In actuality they don't have nearly the capacity to self-replenish due to the fact that these hybrid food sources were designed using chemicals. Added to all of this is the continuing escalation of energy prices. The rotation of crops a direct link to enriched food sources really haven't been used for the past 60 years. This leaves the land so worn out whatever food is harvested is extremely weak if not completely void in vitamins and minerals that are essential for the bodies overall health.
With corporate farming where the bottom line is all that matters here in the United States and it can be said all around the globe the available soil that is the base for our food sources has been steadily over cultivated for the past 60 years. Over farmed to the point that the nutrients and minerals that are essential for healthy crops are completely missing. Consequently, the Honey bees are dying off because the soil hasn't had time to replenish itself. This is devastating to the Honey Bees and to humanity. The Honey bees are now more susceptible to viruses, mites and pesticides. This is the greatest cause as to why the Honey Bees are vanishing.
With the decline of the Honey Bee and the farming practices that corporate farms continue to use along with the GMO food sources that Monsanto produces the health of nations remains in jeopardy. And until we realize that local independent farming where proper techniques are used like crop rotation and put in place fresh water transfer technologies where everyone has abundant fresh water the health crisis we are facing today will only get worse.
Just this past year over 45% Honey Bee colonies were killed off. Millions poisoned by insecticides spraying for Zika. Other insecticides such as Bayer and Syngenta keep flooding our farmable land here in the US with toxins that have been known to wipe out bee colonies. They are still the most widely used pesticides in the country. Many other parts of the world also continue to use these bee killing pesticides.
The future of humanity rests with the action to protect not only the survival of the Honey Bee but action to stop the horrific carnage that is sweeping terror all over the world. As for the future of the Honey Bee if our newly elected President continues to ignore science the health of not only this nation but that of the world is in grave danger. Again, like Global Warming to ignore it's existence the health crisis facing the world today will only get much worse. And that is a scenario to horrific to contemplate.
Putin's Teddy Bear Military - A Cardboard Cutout
Who's afraid of the big bad bear?
President Putin has masterfully crafted a program to provoke the West into a hissy-fit about a former military superpower seeking to recapture its past Soviet era glories and domination through military adventures that challenge NATO and American might. During Russia's recent aggressive thrust close to and beyond the Near Abroad, Russia engaged in battles that were guaranteed public relations victories, not military ones notably: Crimea, eastern Ukraine and Syria. Each encounter had limited downside risk because Russia's military faced inferior, if any, opposition. Consider the following:
Militarily thin Russia is like a former world-class prize fighter who gets himself back in decent shape though far from his peak fighting years. He then buys some cool-looking boxing trunks, gets a good promotional manager and proceeds to beat up drunken beer-bellied toughs in a local dive bar and avoids battle-hardened fighters. It's all a clever measured risk that maximizes Russia's image and minimizes their military's short-comings. Any significant Russian ground battlefield losses regardless if it's a skirmish would spell doom for Putin's strongman political image. The question is whether Putin push his military too far in future ventures.
Russia is a bully in its neighborhood casting a long and dark shadow over smaller nearby countries. To these small countries Russia is a big, hungry bear seeking easy morsels. Though it seems implausible that Putin will risk any military offensive maneuvers in Europe because of potential world condemnation and sanctions, Putin's thirst to gain respect may supersede better judgment.
On the other hand, election victories by European ultra-conservatives in 2017 in France, Germany and other countries may provide Putin a level of respect he desires and will cease his military threats. Nonetheless Putin is keeping his worst-case options open in case the European ultra-conservative parties fall short in the elections and decide change their pre-electoral rhetoric to engage with Russia with respect and as an equal. Taking the non-NATO small countries "hostage" militarily may provoke, in the eyes of the Russians an aggressive military NATO reaction, a confrontation Putin is guaranteed to lose badly.
So I ask again, "Who's afraid of the big bad bear?"
Copyright Indo-Brazilian Associates LLC 2016. All rights reserved.
Indo-Brazilian Associates LLC is a NYC-based global advisory service and think tank with connections at the highest levels specializing in international investment, political and security risk assessments. International business is increasingly complex featuring a highly mobile professional class in all corners of the globe. We provide you the tools to successfully negotiate cross-culturally in your global business endeavors. Tell us about your challenges. We'll get you on the "Short List".
We provide executive coaching, speaking engagements, speechwriting and workshops. Contact us at http://www.indobrazilian.com
President Putin has masterfully crafted a program to provoke the West into a hissy-fit about a former military superpower seeking to recapture its past Soviet era glories and domination through military adventures that challenge NATO and American might. During Russia's recent aggressive thrust close to and beyond the Near Abroad, Russia engaged in battles that were guaranteed public relations victories, not military ones notably: Crimea, eastern Ukraine and Syria. Each encounter had limited downside risk because Russia's military faced inferior, if any, opposition. Consider the following:
- Eastern Ukraine has a large ethnic Russian population and Ukrainian government forces in effect felt like it was fighting on foreign soil. Although Russia denied utilizing its ground troops in this campaign, they still had to be clever to minimize the burials of "little green men."
- Crimea was a lightning invasion of an island whose Russian population heartily welcomed them. Ironically it was a Pyrrhic victory because Russia now assumes Crimea's burdensome economic responsibilities.
- Syria is exclusively an air campaign (a cost savings on body bags), a reinforcement of long-established military installations and access to a deep-water port at the behest of longtime ally, the Syrian government. As a de facto intensive training exercise Russia has been able to test their new high-tech toys under battle conditions against an opposition that didn't have advanced weaponry to threaten them.
Militarily thin Russia is like a former world-class prize fighter who gets himself back in decent shape though far from his peak fighting years. He then buys some cool-looking boxing trunks, gets a good promotional manager and proceeds to beat up drunken beer-bellied toughs in a local dive bar and avoids battle-hardened fighters. It's all a clever measured risk that maximizes Russia's image and minimizes their military's short-comings. Any significant Russian ground battlefield losses regardless if it's a skirmish would spell doom for Putin's strongman political image. The question is whether Putin push his military too far in future ventures.
Russia is a bully in its neighborhood casting a long and dark shadow over smaller nearby countries. To these small countries Russia is a big, hungry bear seeking easy morsels. Though it seems implausible that Putin will risk any military offensive maneuvers in Europe because of potential world condemnation and sanctions, Putin's thirst to gain respect may supersede better judgment.
On the other hand, election victories by European ultra-conservatives in 2017 in France, Germany and other countries may provide Putin a level of respect he desires and will cease his military threats. Nonetheless Putin is keeping his worst-case options open in case the European ultra-conservative parties fall short in the elections and decide change their pre-electoral rhetoric to engage with Russia with respect and as an equal. Taking the non-NATO small countries "hostage" militarily may provoke, in the eyes of the Russians an aggressive military NATO reaction, a confrontation Putin is guaranteed to lose badly.
So I ask again, "Who's afraid of the big bad bear?"
Copyright Indo-Brazilian Associates LLC 2016. All rights reserved.
Indo-Brazilian Associates LLC is a NYC-based global advisory service and think tank with connections at the highest levels specializing in international investment, political and security risk assessments. International business is increasingly complex featuring a highly mobile professional class in all corners of the globe. We provide you the tools to successfully negotiate cross-culturally in your global business endeavors. Tell us about your challenges. We'll get you on the "Short List".
We provide executive coaching, speaking engagements, speechwriting and workshops. Contact us at http://www.indobrazilian.com
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