Loading ...Dollar in a Continuation Pattern with a Bullish Bias
Bullish Continuation Pattern. This could go on for a long time, until either the top or bottom lines are decisively broken. Rising highs, rising lows. The fundamentals support a bullish dollar for the next few years, as there appears to be a worldwide dollar shortage, which will force the price up. Especially if debt needs to be paid off. Can’t pay dollar denominated debt with anything but dollars.
yes! once debts must be repaid, the USD will take off like a rocket ship. what could force this event is a liquidity crisis such as in 2008. however the plan is to inflate the currency away and prevent a liquidity event. if the fed didn’t start QE infinity then that crisis would be hitting soon. THAT SAID the liquidity event could happen anywhere such as China or Europe and then FORCE an event here in the US (this is what I’m expecting). Some countries see the potential issue with local currency (EU) and are issuing USD bonds. Once, for example, the EU or Chinese banks/system falters then the USD will take off. Market plunge, gold plunges initially. Both the local currency problems and linkage to the USD are increasing. See what Italy is doing: https://www.reuters.com/article/us-italy-debt/italy-committed-to-issuing-dollar-bond-this-year-debt-management-chief-idUSKCN1U51I9
Trump wants to get reelected so he is working hard to prevent this crash/event till 2021. Meanwhile the other camp is working hard both publicly and privately to initiate an event ASAP.
Completely agree AP. People should read Plunger’s PBC (post bubble contraction) series. It is playing out just as he predicted a few years ago.
Great read. Here is the link to Plungers PBC.. https://talkmarkets.com/content/commodities/the-coming-global-liquidity-crisisthe-kick-off-of-the-post-bubble-contraction?post=189832