Tuesday, February 1, 2011

WARNING.....The US Dollar is in MAJOR Trouble

Geithner Dollar Crisis
02/01/2011 23:18

Earlier today I wrote a piece forecasting the end of the Euro. At that time, I speculated that the Euro would be broken up within the next year.

Then I looked at the US Dollar’s chart.

I've said before that the US Dollar was in BIG trouble... but as of tonight, it's on DEFCON 1 RED ALERT TROUBLE.

As the below chart shows, the greenback needs to rally and rally hard if we’re not going to head into a SERIOUS collapse shortly.

What you're looking at is the US Dollar right on its multi-year trendline. If we take this out now, then we are heading into an inflationary death spiral in very short order.

Indeed, once we take out this line, we're just a few ticks away from triggering the MASSIVE Head and Shoulders pattern the greenback has formed over the last 20 years.

In case you're wondering, this pattern has an ultimate target of 40... a full 50% lower than where the US Dollar is today.

We're talking about hyper-inflation on an order that would make Weimar Germany proud. And if we break the green line above, we're THAT much closer to this becoming a reality.

In plain terms, the end game is fast approaching if not already here. I've long thought the US Dollar had one last rally in it, but looking at the charts tonight I could very likely be wrong.

Indeed, inflation is already exploding worldwide, which means paper money in general is going to be worth less and less on its way to worthless.

If you think the US is immune to this situation, you're in for a very RUDE surprise in the coming months. Indeed, the Fed’s Hoenic just announced there might even be QE 3… and he’s supposed to be one of the Fed HAWKS!  

The writing on the wall is clear: the Fed will stop at nothing to destroy the US Dollar in order to prop up the Big Banks. The 308 million of us who don’t work on Wall Street are all going to be thrown under the bus. Don’t let it happen. Take steps now to prepare yourself for what’s to come.


Anonymous said...

Denying is how it begins and Gietner has started denying. There are already small US business that will not accept the US$ and the Berkshires have been using Berkshares as tender very successfully now for some time. Just try to convert your US notes in oversees -- nobody wants them.


The dollar is dead.