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Dollar Devaluation: Pushing On A String?

Submitted by thetechnicaltake on 09/23/2010 16:24 -0400

Through the ups and downs of the stock market over
the last 3 months, there has been one constant: the Dollar Index has gone
down. This is surprising as the Dollar has barely managed a bounce
following a very strong up move from November, 2009 to June, 2010. Even
its safe haven status in times of market turbulence is now in question as
traders have moved on to the Swiss Franc or Japanese Yen.

{for a larger image click on graph}

Dollar Devaluation

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Wed, 11/10/2010 - 06:34 | 715684 cheap uggs for sale

Fri, 09/24/2010 - 07:33 | 601841 williambanzai7

DEBASING

http://williambanzai7.blogspot.com/2010/09/debasing.html

Fri, 09/24/2010 - 07:16 | 601824 SWRichmond

Equities? Except for PM miners, who cares?

"Investing" in "equities" implies the existence of a functioning capital market where you can lend your capital to a productive endeavor, help the economy grow, and earn a small return. Does anyone believe that is what the stock market is about? It might be about that again some day, but for now, capital preservation is the order of the day.

Fri, 09/24/2010 - 05:25 | 601777 Sudden Debt

http://www.marketoracle.co.uk/images/Zimbabwe_100_trillion_2009_Obverse.jpg

Can someone break this bill for me in 1$ bills?

Fri, 09/24/2010 - 04:35 | 601757 StychoKiller

For such a heavy metal, Gold keeps trying to float upwards! As I type this, it's reached $1297.8! Of course, it's really the dollar (FRN) sinking like a stone.

Fri, 09/24/2010 - 04:13 | 601746 GreySwan

USD will be sold over the next couple of months, If they can't make China revalue, they have to devalue. Just watch out for quarterly rebalancing end of month. USD will get seriously Fd.

Fri, 09/24/2010 - 03:48 | 601669 Laura Ingalls

The Irish market seems to be falling off the cliff...

http://news.yahoo.com/s/ap/20100923/ap_on_bi_ge/eu_financial_crisis;_ylt=AnbXDYrE3O6mq42Lppu5tGyyBhIF;_ylu=X3oDMTJwYTk3NW9uBGFzc2V0A2FwLzIwMTAwOTIzL2V1X2ZpbmFuY2lhbF9jcmlzaXMEcG9zAzE0BHNlYwN5bl9hcnRpY2xlX3N1bW1hcnlfbGlzdARzbGsDaXJpc2hwb3J0dWd1

I wonder how long until they are getting bailed out too [well, more then they already have been that is].

Fri, 09/24/2010 - 00:57 | 601637 Bose Einstein OracIe

Sweet, thanks for this weeks pay check BoJ. I knew you were ballsy enough to come through for me!

Fri, 09/24/2010 - 00:20 | 601596 Nigaz

Round 2 goes to the BoJ! Let's see how much backing this intervention has during the day...

Fri, 09/24/2010 - 00:09 | 601584 slvrizgold

They're pushing on a donut. In the middle.

Fri, 09/24/2010 - 00:05 | 601578 Buttcathead

I aint buying nuttin. If you buys the dollar "the man" pushes it down to pump stocks. If you buys over valued stocks the zombies think more suckers like you are standing in line so they unload. It's all a racket. They is broker than broke.

Thu, 09/23/2010 - 23:21 | 601502 99er

Chart: GC

Gold futures appear to be topping out at current levels.

http://99ercharts.blogspot.com/2010/09/gc_23.html

While the USD futures appear to be forming a channel...up.

http://99ercharts.blogspot.com/2010/09/dx_7843.html

Fri, 09/24/2010 - 01:38 | 601667 Laura Ingalls

Yet more informative charts.

Thanks 99er.

Thu, 09/23/2010 - 22:16 | 601426 Laura Ingalls

On the chart I've been watching the dollar has gone up a little for a short time but for the most part it has gone down.

I noticed that last year when the dollar went down the Dow went up and vice versa. I think that inverse correlation they've had has been breaking down recently though. That probably means very bad things for the Dow.

Thu, 09/23/2010 - 22:34 | 601448 Arkadaba

Historically, the dollar has been on a downward trend and yes you used to be able to see an inverse correlation between the DXY and S&P but ... you don't always see those correlations anymore. On some days everything is going up or is going down - which suggests to me something is broken.

And again take a look at that last chart for the DXY - covers a number of years. The trend for the dollar has been downward but the "crisis" forced a flight to the dollar as reserve currency - and that is worth a Matt Tabbi article - wish I had time to look into it in more depth;)

Thu, 09/23/2010 - 23:12 | 601492 Laura Ingalls

"which suggests to me something is broken"

Agreed.

You have my sympathy on those student loans. Hopefully you have them paid off now what with all those ugly looking storm clouds looming on the horizon.

Thu, 09/23/2010 - 23:24 | 601517 Arkadaba

all paid off :)

Thu, 09/23/2010 - 22:42 | 601458 Arkadaba

And just some background as to why I was so interested in the DXY - I was working in the States and paying off my student loan in Canadian dollars - so it was important to me.

Thu, 09/23/2010 - 21:47 | 601396 Arkadaba

I've been following the DXY for a few years now and have expected a down trend for a while but I think I underestimated external political factors. Check out the last chart here:

http://jessescrossroadscafe.blogspot.com/2010/09/gold-and-silver-daily-charts_22.html

Thu, 09/23/2010 - 21:14 | 601338 Quinvarius

The FOREX system allows you to print everyone else's currency. I don't know if you will see much watching the DXY. We are going to take everyone else with us on this trip. I still contend that the Euro crisis was caused by the USA abusing the EUR/USD FOREX cross and flooding the world digital euros while sucking dollars out of the system to save its own ass. All currency is fungible.

Thu, 09/23/2010 - 19:33 | 601210 newstreet

Spitzer, I'll keep your comment in mind with a tight stop.

Thu, 09/23/2010 - 19:03 | 601163 MacHoolahan

Is it just gold that maintains its value against a toilet-paper dollar - or other currencies like the CHF? Not everbody is printing at the demented-monkey rates of monkey-Ben...

Gold seems manipulated and much of it is sold through ETFs which are (highly) likely criminal, but then currencies are pretty tradeable - from a big investment punt, to a few notes in your pocket.

Just a question really - go gentle...

Thu, 09/23/2010 - 21:37 | 601375 AUD

I think all papers are depreciating against gold.

Thu, 09/23/2010 - 17:46 | 601058 Spitzer

I think this is the 3rd post today that has mentioned a dollar bottoming. If you include the "mmm summer of 2008" thread, that would be 4 dollar bull posts today.

The dollar is about to get trashed.

gold bitchez

Thu, 09/23/2010 - 17:20 | 601002 newstreet

Buy lows, sell highs. Is DXY on the lows?

Dollar Devaluation: Pushing On A String?

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