Its More Than Europe

If one looks at the charts it is evident that the dollar/yen and dollar/euro rates started changing after November 3, the date that QE2 details were confirmed.  The QE2 anticipation bubble in stocks, commodities, and precious metals started a slow unraveling since.  So far there is little follow through on the unraveling, but the early signals are in.  

Talking about Black Friday seems to be more fun today.  Apparently CNBC doesn’t put much weight on the austerity cycle which has started around the world and will be and is most evident in government spending cuts, local, state, and federal.

Bottom line, stocks and commodities are overpriced for this economic base building period.