Posted on 03/03/2011 4:36:25 PM PST by Errant
The US Dollar Index continues to flirt with a long-term (3-year) Trendline and critical
support level which traders are watching very closely.
The next potential support zone to catch price would be the simple $76 Index level,
which drew in support in November 2010 and twice around August/September 2008.
A breakdown under the $76 support sets up a play for the 2009 low near $74.20…
and deterioration below that could send the index back down to the 2008 levels – but
let’s not assume that is the only pathway until we start breaking immediate levels right here.
(Excerpt) Read more at greenfaucet.com ...
how can the dollar index be less than a dollar. just asking?
Everyone say it:
“Thanks Helicopter Ben!”
Thanks banana ben
Fed Balance Sheet Hits New Record At $2.55 Trillion As Bank Reserves Hit $1.3 Trillion All Time High
1. Debt monetization (printing money out of thin air to cover the portion of governments spending not satisfied by tax revenue and borrowing) reduces the value of the dollar.
2. The debt monetization triggers dollars to flow out of bonds and into commodities.
3. This increases demand, commodity prices rise.
4. As commodities make their way into the supply chains businesses and consumers realize higher prices.
5. Since globalization has caused wages to stagnate at 1970 levels, and with 23% unemployment, businesses try to eat increases, this in turn reduces hiring, causes layoffs and kills expansion.
6. Consumers reduce their purchases, case in point: Wal-Mart is losing market share to the Dollar Store - that right there spells retail health (read: it’s terminal).
7. Nations whose citizens spend 32%-52% of their entire budget on food are especially affected.
8. In those nations where citizens spend 32%-52% of total their income on food; food riots erupt, social unrest breaks out, governments topple.
9. Geographically speaking, many of these nations are in the Middle East where about a third of the world's oil supply comes from - so oil production is adversely affected, the price of oil increases. Drastically increases. The empire must then send in troops and warships to protect oil assets from being wiped off the map.
10. Oil is an integral part of everything from farming to manufacturing to transportation, therfore the prices of all goods and services rise.
11. This of course creates more stress on our economy, which drives tax revenues down, whic creates a greater deficit, which causes idtiot Ben to lean on the print button and monetize even more debt.
12. Like an infinite loop in some errant computer code we go back to #1 above and iterate back through this unstoppable, self reinforcing, negatively-insane-Ben Bernanke-code that we call a negative self reinforcing feedback loop.
“7. Nations whose citizens spend 32%-52% of their entire budget on food are especially affected.
8. In those nations where citizens spend 32%-52% of total their income on food; food riots erupt, social unrest breaks out, governments topple”
Bennocide killing the dollar and people
And in our case, destroying the government support system for millions (retirees, welfare & food program recipients, section 8 housing subsidies, government employment, government provided health-care and more).
When the above lose their means to survive, they're going to make sure everyone knows about it.
The resulting protests, riots and shutdowns will bring our economy to a standstill. When that happens, people will become desperate and then all hell will break loose. It will start in the cities but spread very quickly to every area of the country. It's a scenario our DOD has recently been training and planning for.
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