Thursday, April 28, 2011

Breaking Down

Breaking down is all you can say and maybe even accelerating. Take a peek at that little tail. Notice how it didn't just drop below $74 it is falling out of that well defined channel that it's been in.

I had to back three years to find a semblence of support on the $USD and we just broke that support. The $USD is just an index of the dollar against a basket of currencies. So, it is a relative indicator. In the FX exchanges where the institutions play the gold standard is gold and the dollar broke down against it a long time ago.

I said that a dollar devaluation is coming during Obama's first term, by either presidential decree or market force. This may be the begging of that dollar collapse.

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