Wednesday, October 05, 2011

The Dollar

 What I am finding in the print today is that there is a huge amount of short interest in the USD by commercial banks and they are piling into the EUR. The chart above shows the recent breakdown on the intraday chart. This would suggest the banks are betting on more QE and that the eurozone will survive. All of this is bullish for stocks and commodities.


I find the long term chart of the USD very interesting in that if we look at the current SPX and back before the fall of Lehman the dollar staged a dramatic rise as if it or some people knew what was coming. Now we are seeing a similar rise again in the fall three years later, what does it all mean. You and I both know that the Fed is in league with the Banks, so this time the fed is prepared and the banks are positioning themselves.
I think the fed may be getting ready to devalue the dollar by 10%. We are going to all wake up one morning feeling a bit lighter unless we have been stacking during pullbacks.
Globally central banks are working together to short gold and silver and devalue their currencies, the endgame is to transfer their paper wealth into gold and silver but not yield their power. So even if you are ahead of the game they will shake the little guy out and take his metal for pennies of what its worth. Why do you think Silver isn't over a hundred right now while gold is over 1600 (16:1 ratio).

Whatever, its taken me some time but i'm starting to understand this game.

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