Great stuff, Wattie!Lots of talk Froddy that the $ is in danger of losing reserve currency status.....itscertainly been on a weak run (from highs). The reason for this is that the Ponzi Us economy is 100% reliant on Fed money from thin air. It's there for all to see.
Juiced stock markets, millions unemployed, deteriorating infection rate, civil unrest, massive social service liabilities and massive unrepayable government debt.
The Fed stops printing, it all collapses.
They keep printing to maintain the illusion...they'll need to print so much to maintain the status quo it'll devalue the currency.
If it deteriorates it will typically send precious metals surging as they're priced in $. Lower dollar means cheaper to buy.
By the way, Silver is arguably the most undervalued investment on the planet just now. It’s still over 50% below it’s all time high......cheap way of protecting "purchasing power".
I'm not an economist, so I can't comment on your US$ analysis but it makes sense to me.
I was taught a few years ago that, when the markets are in trouble, silver is the true safe haven. It's totally undervalued, and has been for a very long time. Its rise (now) speaks volumes.
I have no idea whether the US$ will bounce or not; all I know is that the last time it hit the lower trendline, it bounced hard and there was a liquidity crisis. I've also just drawn this chart on AUD/JPY (the "carry trade"), and the coincidence of these factors could be significant.
Australian Dollar/Japanese Yen Candlestick chart created with TrendSpider
Gold (spot) is flying, and people may be tempted to add to their positions. It may fly higher (I don't know), but I think this is important to note:
I've banged on for ages about the put:call ratio and the SKEW - they are both screaming for a correction. The problem is that the markets are so heavily manipulated by the central banks that these readings grow and grow and yet the bubble never seems to burst.
All I can say is take care!