Global forces are lining up against Janet Yellen and the Fed in her attempt to raise interest rates next week.
The Bank of England Thursday agreed to hold rates at 0.5% and continue its monthly easing at £375 billion.
The only commodity not crashing in terms that are in currencies other than US dollars is gold. It is a record highs when priced in BRICS currencies. Showing how these economies have been devastated by recessionary pricing and cratering trade imbalances.
Soaring gold prices are the bane of central bankers as it shows the alternative to their fiat currency is winning.
The dollar strength is keeping precious metal prices suppressed here.
A newish barometer on the health of world currencies may be bitcoin. The electronic cyrpto-currency is at a two-year high at $415 per btc.
What bitcoin allows is for a hedge and arbitrage against currency inflation by buying in your home currency and cashing in dollars.
This could be the very reason stories came out yesterday about an apparent arrest of an Australian, who allegedly invented the digital currency. Each time bitcoin begins to get pricing traction another negative story comes out to make people wary of its use.
Look for in the coming days of a big arrest on the order of Silk Road to re-enforce the “criminal” element into the equation.