Replies to post #3884 on Velocityshares Daily 2X Vix Medium Term (TVIZ)

[gldtimer]

USD Overvalued IMHO.

Inflation (unless compensated by a positive interest rate) destroys the value of a currency.

The US is leading (along with the UK and Canada) the world to a higher inflation path, but by not increasing rates makes the USD venerable to low inflation currencies...the euro, aussie, and yen.

http://www.businessinsider.com.au/this-nifty-chart-from-deutsche-bank-shows-how-inflation-is-tracking-around-the-world-2016-8

Something is wrong when the core inflation rate in a country is greater than the real growth rate as is the case in the USA with a 2%+ core inflation rate, but only a 1% real growth rate.

This officially moves the US into a low level stagflation mode.

The market is finally recognizing the fact and now has given me the signal the USD should move lower.