The dollar's recent strength has been explained by most market analysts as a result of the euro weakness rather than any fundamental support for the greenback. In fact, a closer look at the dollar's chart - particularly the dollar index - suggests the currency may be primed for a collapse.
The dramatic dollar index rise from $0.81 to $0.87 in recent weeks shows the chart's developed a dramatic and possibly dangerous parabolic trend. This trend has four important features.
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CLICK TO ENLARGE GRAPH Dollar Index Weekly Chart |
The first is the way it captures an acceleration in behavior. The trend starts slowly and then gathers speed, rapidly moving up with increasing volatility.
The second feature is the shape of the curved parabolic trend rise. This is not a true parabolic curve because as the trend accelerates the curve changes shape until it becomes vertical. It’s the vertical section of the curve which is most useful because it provides a exact date when the trend will inevitably collapse.
This type of trend line curve was first identified in the 1930’s and it was mistakenly called a parabolic curve. We continue to use the name, even though it is not an accurate description. In the 1930’s this was a rare behavior. In the last decade this curve has become increasingly common as volatility has increased in modern markets. This type of trend should not be confused with the parabolic Stop and Reverse indicator.
Time to buy that used car I want and a new set of kitchen knives.
ReplyDeletetime to get rid of the dollar and related paper assets.
ReplyDeleteOff the subject I know. But dollars and oil values go together.
ReplyDeleteAll this pessimism!
Crisis only creates opportunity for those with insurance and the right derivative bets .
Some can still get rich even in a failed economy .Cheer up!
As with 9/11 insurance on the twin towers,even a double insurance payoff is possible.
The insurance payout on Deepwater Horizon rig owner appears to be already in the bag ,more than a half a trillion $ payout .570 millions?
Not too bad from a sunk failed useless rig.
Was it “pulled” after the initial blow-out?
As the rig was rented at $800,000 a day B.P . itself was probably relieved to see it disappear into the sea. Especialy ,as they already knew the blow out preventer was already kaput ,an accident in waiting , practically guaranteed to occur at these pressures with a failed blow out preventer .
BP claims to have cheerfully paid out nearly a trillion $ on the cleanup so far.
Will BP pay for it all?
I wonder what they were insured for ?
Just asking .
As they say curius minds want to know.
Will any insurance companies or banks on the other end of any derivative bets, the losers ,
get bailed out by governments as “too big to fail” like AIG was at taxpayers expense?
Who will pay out for the end costs ,surely to be counted in trillions $?
Just what derivatives bets are floating about with the dead workers and fish in the spilt oil?
BP after all has only a 60% responsibility of a maximum environmental cost by law of a liability of 75 million dollars for any environmental damage.
Other “partners’ to share in this total 75 million liability include Anararko oil, a US company and Mitsui a Japanese finance and trade conglomerate.
And Halliburton?
Will they only have to share in the 75 mill cost payout too ?
Yeh,right!.
Taxpayers better get ready to pass the hat around to save American business from derivitive losses .
Again!
This article is hilarious.
ReplyDeleteThe author describes in detail four trends that point to a "collapse" of the dollar by the end of June...
...then sets a "collapsed" target on the DXY for 81.
81? That's the "collapse?"
I'm not saying that the dollar is not doomed. It is...eventually. However, with the troubles in Europe right now, it is still in the "relatively" distant future. My guess is the middle of this decade or so.
...and even if the DXY does hit 81 by the end of June, that is by no means a "collapse." If/when it gets to 50 or something...that's when things get ugly here in the U.S.
This is nothing but more propaganda from CNBS to get people to buy into the stock market "rally" of the last 18 months.
...which is soon to be an "ex-rally" as deflation starts rearing its ugly head again.
I felt the same way about the given date, anything with a date that has that kind of approximation is a bit silly.
ReplyDeleteI don't mind certain prophecies spiritually that give a rounded time period like a year which would include a few before and a few beyond that year as being the date.
With the imminent collapse if he would have said sometime in the middle of 2010, give or take a season, then that would have been better. But to say the end of June is a little too precise...
I am still feeling this is going to happen much sooner than even two years. While the dollar might not crash immediately I believe other factors will hasten the demise of structured civilization (economically and politically).
What I think we'll see is people getting more vicious, rallies turning ugly, people throwing harder protests against certain laws, possible assassination attempts, and the media becoming more nasty and lying deliberately while also targeting certain types of people.
We also have to note that Islamic Radicals have been observing and liking this turn of events in America (and other "free" countries). They love Obama because he is a pussified president, they've been recruiting soldiers all over Asia and Europe - 300,000 British youth have joined the Jihad, these aren't Arabs either, they are white kids, black, even girls now are joining in (like the two female bombers in Moscow recently). This is also starting to form up in America, Taliban schools are Constitutionally protected.
(For anyone who still insists there is no such thing as Islamic Extremists and they are just CIA mind programmed people then maybe you should go move to Saudi Arabia, they aren't bullies over there... or maybe you are an Islamic Extremist?)
A further annihilation would come about by the quality of people in this country now. The amount of people with obesity, health problems, mental disorders, drug addiction, and other detrimental attributes is astounding. A good portion of teenagers and 20 somethings now can't go one minute without text messaging, the number one thing on their brains is their next high or drink.
Does anyone question who will run things in 20 years? My gosh, today's leaders are a degenerate version of yesteryear, today's parents as well. Generation Y will be exponentially worse than the people today. And Generation Z; their children, will practically be zombies.
Who controls the present? They control the past, who controls the past? They control the future. Those who controlled the adults 40 years ago were able to design the adults today.
12:07 you dip. If a foreign country came in and leveled your home and killed your family would you be an 'extremist' and fight back? Grow a brain.
ReplyDeleteTOP KILL will not stop the oil volcano. It isn't meant to stop it. Too much $$ to be made.
ReplyDelete(For anyone who still insists there is no such thing as Islamic Extremists and they are just CIA mind programmed people then maybe you should go move to Saudi Arabia, they aren't bullies over there... or maybe you are an Islamic Extremist?)
ReplyDeleteYou are just making pro american "religious" propaganda.Spreading confusion.
Havent you noticed that these same Saudi, Sunni ,Wahabi extremists you point at are the "acceptable" American owned "moderate" Muslims, the royal dictatorship, puppet Allies that America has put in place and protected for decades , in order to rob the Saudi people and to price the oil in dollars .
Bin Laden was such a "CIA programmed" anti-communist WAHABI fanatic .Who realised that he was being conned and turned on his CIA handlers.
More "secular" leaders like Saddam are removed by America . The US only likes its own brand of Muslim lackey dictatorships that supply cheap oil . Were te women in Iraq more free under Saddam than the women in Saudi under the US aly Wahabi puppet extreemists?
Are you surprised that "anti -American" "Jihadis" for national ndepenence and progress are even appearing in Saudi now too. The saudi royal family may be in trouble.
Why do you see that as Anti-american threat?
How come The "pussified President" is sending more troops to Afghanistan and attacking Muslims in Pakistan now ,in alliance with these same Saudi Kings religious extremists .
Its not only a "religious" thing .That is only religious war propaganda covering for imperialism . Some "Jihadis" fight for national independence, some are more religious than others and support Muslim culture religious lifestyles rather than imposed U.S.hollywood culture .
In the past decades the striuggles for national indepenence in the world against imperialism were often led by Communists But they have been suppressed ,as in Saudi by the US armed Kings or failed to step up to the plate in the Moslem World. And like in Iran the people have to Muslims for national indepenence and more democratic national control over their Assets like oil.
Better you worry about the problems of a bankrupt, culturaly degenerate America you list and democracy after a financial coup, than preaching "religous"war as a diversion for the American "Judeo -Christian" Elite class now economicaly terrorising America by destroying its currency and looting the treasury.
MELTUP is a great video, just got around to watching it.
ReplyDeleteif the value is at 87% isn't that good?
ReplyDeleteThe days of spine and noses are at hand
ReplyDeleteAmereagans have had their last and final
Reunite on ice so nice
Moment
There's a fragrance that's here today
And they call it
Depop
I tend to think 'things' will get worse at the end of summer and further degrade as we move into 2011. I don't like the date givers either as I think it's not entirely necessary. Most of us here see the collapse coming and we prepare accordingly. I know I want to enjoy the world as it is today for as long as possible.
ReplyDeleteThe most overused words these days is "may" - "possible" and "collapse."
ReplyDeleteIf it doesn't collapse, I'm going to be very disappointed. The healthiest thing that could happen to the US economy is a true collapse. Clean out all the government & union based excess and get everyone back to reality.