US Dollar Sinking

Above is a weekly chart of the UUP, US$ ETF, it has formed an head and shoulders pattern and is now accelerating and may not complete until it hits 20. That will be a huge move. I have to admit I missed calling this pattern, I have been so focused on the metals and macro, i missed the chart.

For months now, I have been saying the dollar is in deep $h^t. The policies implemented by the Fed are not working, we aren't ever going to cut spending at least not till it's too late. I have been writing about protecting yourself (commodities and precious metals).

Taking the temperature of the average person in my day to day dealings, PEOPLE ARE OBLIVIOUS, it all these honest hardworking people that are going to be smashed (once again ) by government policies. In 08 most of us lost 50% of our net worth during the global market crash. Years of savings are gone. The debt crisis and dollar debasement will take out another 50% before its all said and done.

Digressing for a moment, I made a comment earlier about most people being oblivious as to the state of the nations economy, these are the same people who think that Owebama is sincere about cutting spending, and saving 4 trillion dollars. I have a saying I learned a long time ago, "don't listen to what people tell you, look at what they do". How does this apply to investing? The action is reflected in the price movement. Buying and selling, shows you what they are really thinking. The smart money is saying "we don't believe you Owebama". Or perhaps what he is planning isn't believable, or nearly enough or wont be in time to save the US from collapse. 

Most people have no idea how possible this really  is! The day (heaven forbid) the world gives up on the dollar or when they don't need dollars to buy commodities our economy will more than likely collapse. We'll probably default on our debt and go into depression.

These guys can  raise the debt ceiling all they want they will just keep killing the value of the dollar, until it's worthless. 

Oh by the way, the proposed budget cuts (like peeing in the ocean) will not make a dent in this overwhelming debt. If all of us were taxed at a 100% we couldn't pay for this years worth of spending.

Hey, and if you think I am full of $h^t just keep watching the chart (UUP), PRICE DOES NOT LIE. PEOPLE DO.

Keep watching Silver and Gold and Oil go up day after day. PRICE DOES NOT LIE.