The word 'scare' has been used over 'crisis' in the title, as it is a long shot for a full blow USD crisis, however the cycles do raise an eyebrow.
The news waves have recently stated the ECB may release more Europe QE as the EURUSD has gained too much strength. More ECB QE will lower the EUR and raise the USD, assuming the numbers are large enough. This move may slow down or even halt a plunge in the US dollar, after all central banks do talk to each other and the US Fed is sending brand new printed dollar bills to many foreign banks.
However what is very interesting is the rather large move in the US Ten year interest rate has not had a relatively large move in the US dollar. This raises the question, what kind a move in the TNX is required to support a falling US dollar, the short answer is 'a lot'. This of course provides evidence for hard metals to have a place in your wealth and talk of interest rate rallies is very 'real'.
The most attractive reason for a US dollar sell off is the monetization of US debt. The US FED is now 70% buyer of all new US bond paper over 5 years, and if that is not monetizing the debt then what is? So far the music has not stopped playing and no one needs a chair just yet. But father time is still working and he will most likely win in the end and some sort of US dollar scare will happen. Don't believe me, then why are all central banks net buyers of gold. [Not supposed to be a cheerleader for gold bugs, but facts are facts] .
The charts
Investing Quote
"Stocks, like atoms, are really centers of energies.Therefore they are controlled mathematically"...."There is no chance in nature because mathematical principles of the highest order lie at the foundation of all things" ~ William D Gann
"Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception" ~ George Soros
