Euros got hit as you would expect because the ECB news was going to directly impact the Euros but everything that trades around the Euros of course got impacted as well. Gold got hit. All the commodities got hit because of what the ECB is signaling with this surprise rate cut to bring them in line with the Fed and the Bank of Japan. It can't be long now before the Bank of England also comes into line
Fitch put out a lot of material in research about a declining China and a declining Russia, so people won't be able to avoid using the D-Word (Deflation) by next year. The actions of the central banks would certainly portend that deflation is a much bigger threat than what the Fed or any other central banks would admit publicly.
Also the fact that you are now seeing a lot of softening -- even in the last 30 days -- as well as a tremendous decline in certain collectible markets and a huge decline in real estate markets. There's an acceleration of the softening in the asset classes that get hit first when deflation is coming.
For the rest of this column by Independent Political, Economic & Market Analyst Al Martin, please click here -- Al Martin Raw
* AL MARTIN, author of "The Conspirators: Secrets of an Iran Contra Insider," is an Independent Political-Economic Analyst with 25 years of experience as a trader on NYMEX, CME, CBOT and CFTC. He is also currently trading the commodity futures market day and night and has a teleconferencing service to facilitate transactions in the markets. This is a service for independent experienced traders.
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