The U.S. Dollar Had To Use The Rest Room Today…

While gold, silver and mining shares catapulted from overnight and early attempts to manipulate them lower…(click on graphs to enlarge):

SeptDX

USDX

The U.S. dollar has lost the psychologically important 80-handle, it lost its 200 day moving average on Friday and its 50 dma today.  All of these are important technical levels.  The most interesting aspect of the graph on the bottom is the accumulation/distribution line.  This shows net dollars flowing either into or out of U.S. dollar futures.  As you can see, the dollar has experienced significant outflows since last July.  The outflows slowed down for a bit in early May but it appears as if the selling is gathering momentum again.

Can’t say I would be an anxious holder of U.S. dollar given our Government’s incompetent handling of its imperialistic affairs, the extreme fraud and corruption that has infested every corner of DC – including the Oval Office  – AND,of course, the declining wealth output as measured by the latest GDP reading.

 

2 thoughts on “The U.S. Dollar Had To Use The Rest Room Today…

  1. At some point the gold price to Fed balance sheet must be reconciled.

    http://www.macrotrends.net/1448/fed-balance-sheet-vs-gold-price

    “Money printing” – monetary inflation / increase in the money supply – eventually leads to price inflation. The Fed is now getting what is wants in spades. We have been in this cycle for quite a while now: 1) print more money and/or ZIRP, stimulate more borrowing by whatever means necessary, 2) blow an asset bubble, 2) bubble bursts, 3) economy rolls over, 4) rinse and repeat. Only problem is that the debt level has been increasing with ea. cycle. We are now at debt saturation level where growth is near zero in spite of additional debt. USD has already lost over 95% of its purchasing power since 1913. Not much left to go here…

    ZIRP enables gov’t. borrowing at no cost. This is clearly debt monetization and unsustainable. To see where we’re going, just look at Argentina or Japan. It will be interesting to see what the Fed does this time around. Expanding their balance sheet from here is a politically and financially untenable position. The Fed is “out of bazookas, bullets, ammunition, etc. We have reached the endgame. The coming economic contraction over the next few years will be even more difficult for Americans than during the last “Great Recession” IMHO. We did not ever really recover from this. End the Fed.

  2. More commentary on the appointment of Tefft from the Russian media. With Poroschenko moving to an attack policy in the East of Ukraine looks like the EU emergency loan yesterday to Bulgaria with less than 6 weeks supply of gas is going to be used up really fast.

    The choice by US President Barack Obama and the neo-conservative Cold War hawks running the US foreign policy establishment of John F. Tefft as the new US Ambassador to Russia should be setting off warning bells all over the Kremlin and in fact in all of the countries currently undergoing or targeted for US regime change/destabilization operations including Venezuela, Brazil, Syria and all other countries pursuing an independent foreign policy. With the current humanitarian catastrophe in Ukraine and the rise of violent fascist forces, the fact that the chief architect of Operation Ukraine is now being sent to Russia is at once chilling and at the same time predictable.

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