The collision of global markets and social mood

Thursday, October 7, 2010

The Fulcrum And The EKG

Note that the USD is the fulcrum for the world's leverage. Despite all the talk about emerging markets and decoupling, the outlandish moves we are seeing across multiple markets are dollar moves. Watch how quickly an intraday bounce in the USD causes dangerous palpitations in the one-way EKG charts of world markets.

As any heart specialist will tell you, when the natural peaks and valleys in a patient's EKG smooth out, death is close by. We are seeing smooth, straight-line moves. And the doctors keep prescribing the same drug in ever-increasing doses.

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