Charles Nenner and Harry Dent Jr 2012 Cycle Bears - Part Eight

By: readtheticker | Sun, Dec 4, 2011
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The 'Purchasing manufacturing index' (PMI) is highly correlated to GDP. So what does a chart say when all the major manufacturing nations (but the USA) PMI are under 50 (or recessionary).

Source: China Services PMI Crashes As US Lags Not Decouples

We agree with David Rosenberg (ref link above) the USA is lagging, and the world is on the brink of a full on recession, early 2012 will be very interesting. The evidence for Harry Dent thesis is growing and growing. We feel that there is a 'see change' coming, a true adjustment in trends. QE's and money printing does NOT get into the real economy and the economic data is proving this to me so. After all USA did back to back QE1 and QE2 and recently GDP has been cut from 3% to 2%, go figure!

The chart...

Global Cooling

What to watch, classic risk assets like Aussie dollar, silver and copper are all making lower highs, blog readers will remember the USD dollar Gann Angle chart below. So far the last blue bullish Gann Angle is winning. Harry Dent thesis states that a multi year USD dollar rally is part of his deflationary sequence of events. Have the last few weeks been the USD rally kick off? Could force a ripple in gold and silver prices, watch this space!

NEWS FLASH: Funny how ALL CENTRAL BANKS boosted liquidity (ie USD) just before the US printed a surprise lower employment rate percentage this last Friday. Hmmm something is brewing and its big.

Gann Angles on US Dollar ETF

 


 

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Author: readtheticker

readtheticker
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Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/