With the recession over and the end of USA's Fiscal Year on Sept 30th,
in all accounts 2009 is behind us.
With that said, an exit strategy is in play for the global ZIRP.
Here are two charts with T-BILL rates, SPY, GOLD and the USD. Look at the correlation
between short term rates, the USD and the prolonged affect of raising rates on equities.
The last cycle of rising interest rates took 17 hikes and two years to cool down the economy.
As we move forward you'll have an ample amount of time to act/react as interest rates and currencies
TREND FOR YEARS.
Obama is using the same tax playbook as was used during the Clinton years, during that time the
USD strengthened AND stocks went higher along with interest rates. Given the ZIRP effects and
the return on/of risk capital invested in the USD/USA, a strong dollar policy will be rewarded to those
who risked all for ZIRP.
Kevin B. Bantz
