With Brexit talks in the gutter, Merkel in trouble and Poland flexing its muscles on immigration the EU is staring at an apocalyptic 2018. The Federal Reserve to no one’s surprise raised rates a quarter point today.
The response from the markets was Europe’s worst nightmare because not only did the dollar spike but gold moved along with it.
Zerohedge has the story of the Market’s initial response.
I’ve been saying for months that 2018 would be bad for the EU because the dollar is going to go through the roof. It looks like Trump’s tax plan will go through, The Fed is committed to raising rates 3 times in 2018 per its statement and the ECB has no ability or room to raise rates itself.
And all of those things are nothing but dollar positive.
What is setting up now is The Perfect Storm which is about to hit the markets. Gold, the dollar and U.S. equities will all rise in concert as capital flees the mess unfolding in Europe and the regime certainty emerging in the U.S.
Like it or not, Trump is winning and his opposition is wilting, the debacle in Alabama last night notwithstanding.
And it’s all coming together at the same time.