• 751 days Will The ECB Continue To Hike Rates?
  • 751 days Forbes: Aramco Remains Largest Company In The Middle East
  • 753 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,153 days Could Crypto Overtake Traditional Investment?
  • 1,158 days Americans Still Quitting Jobs At Record Pace
  • 1,160 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,163 days Is The Dollar Too Strong?
  • 1,163 days Big Tech Disappoints Investors on Earnings Calls
  • 1,164 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,166 days China Is Quietly Trying To Distance Itself From Russia
  • 1,166 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,170 days Crypto Investors Won Big In 2021
  • 1,170 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,171 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,173 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,174 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,177 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,178 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,178 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,180 days Are NFTs About To Take Over Gaming?
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

  1. Home
  2. Markets
  3. Other

Dollar Decline Confirmed

As I have been saying for over a year now, the dollar will not make new highs, and it will collapse as the consequences of QE infinity ultimately take their toll.

Today the dollar confirmed that an intermediate degree decline has begun by closing strongly below the previous daily cycle low. A new pattern of lower lows and lower highs has now begun.

Dollar Chart - Daily cycle failure confirmed
Larger Image

As I've been saying for months, the dollar rally was a mirage. The only reason the dollar index was strong was because the yen, euro, pound and Canadian dollar were all moving down into intermediate or yearly cycle lows together. That gave the illusion that the dollar was rising. The dollar was simply benefiting from people selling everything else.

But now it's the dollar's turn. Let's face it, in the real world you can't print unlimited amounts of money and not have something bad happen. The real world just doesn't work that way. Maybe in fairy tale land were magic works, but not here in the real world.

Over the next 2-3 months I fully expect the dollar to crash through support at 78.60, and maybe even test the 2011 lows. Of course that is only the beginning. Before this is done we will have a full blown currency crisis in the US Dollar at the next three year cycle low that is due in late 2014. Who knows how much damage will be done during that catastrophe. I expect we will see something similar to what is happening to the yen right now.

As a matter of fact, the Yen is only the first of what will almost certainly be a rolling crisis as the cancer works its way up the food chain from the Yen, to the Pound, and finally the Dollar.

Brace yourself folks, it's time the lipstick comes off this pig, and it ain't going to be a pretty sight.

 

Back to homepage

Leave a comment

Leave a comment