Don’t Believe the Chart, the US Dollar is Dropping Like a Stone

Phoenix Capital Research's picture

I want to
take a moment to address the US Dollar’s collapse.

 

The US
Dollar which most investors follow is the US Dollar index. This represents the
US Dollar’s value against a basket of major currencies: the Euro, Japanese Yen,
etc.

 

Think about
that for a moment: the way we measure the US Dollar’s value is against a
collection of other un-backed paper currencies all issued by over-indebted,
bankrupt nations.

 

In other
words, its nonsense.

 

Case in
point, the Euro comprises over 50% of the US Dollar index. What’s the Euro? A
currency backed by a loose group of bankrupt nations with maybe two solvent
members in the bunch. Greece has already asked for an extension on its bailout
repayments (like they’re ever going to repay anything), Spain is bankrupt,
ditto for Ireland, Italy, Portugal, and others.

 

As for the
more solvent European members (Germany and maybe
France) their political leaders are getting crushed in the elections because
NOBODY who actually works for a living (or has a working brain) wants in on the
Euro.

 

So in Europe
we’ve got one perhaps two solvent countries that are supposed to bailout 5+
insolvent ones (like that’s even possible). And the solvent countries are
comprised of people who want no part of the Euro.

 

Man, now
that’s what I call a real currency.

 

In simple
terms, to claim the Euro is a viable currency is pure insanity. And yet, this “currency”
comprises 50% of the US Dollar index (not as though the Yen or US Dollar are worthwhile
either).

 

My point in
all of this is that measuring the greenback using the Euro is insane. 100%
totally insane. Which is why claiming the US Dollar is not collapsing is BS. If
you actually go outside the US (which
99% of commentators don’t) you’ll find that the US Dollar is worth much less
than the Dollar index is telling you.

 

I was
recently on a trip to South America looking at real estate. While there I was
told repeatedly by developers that they didn’t want to sign a contract in US
Dollars. Instead they wanted to do it in the local currency.  This has NEVER happened before during my
trips abroad (even as recently as 2009).

 

When I pushed
for having contracts based in Dollars, the price went up EVERY week.

 

The reason? The US Dollar is falling in relation to the
local currency on a daily basis.

 

So here are
local businessmen, (not economists or analysts), people who actually work for a living, refusing to accept US
Dollars during business transactions.

 

That alone
should tell you just where the US Dollar stands on the international stage.

 

In plain
terms, the US Dollar crisis is already underway. If you ignore the stupid
headlines and pay attention to the real world you can already see it. Prices of
goods are EXPLODING higher. It’s being hidden because retailers are downsizing
the size of their packages OR packing less goods in the same space (look inside
any cereal box or other dry good and you’ll find that at best it’s 75% full).

 

So if you
think things are fine because the US Dollar chart shows we still have a few
lines of support, you’re being mislead. The US Dollar is worth far, far less
than the chart shows you. So if you want to prepare yourself for a currency
crisis you need to move now.

 

On that
note, if you’re getting worried about the future of the stock market and have
yet to take steps to prepare for the Second Round of the Financial Crisis… I
highly suggest you download my FREE Special Report specifying exactly how to
prepare for what’s to come.

 

I call it The Financial Crisis “Round Two” Survival
Kit
. And its 17 pages contain a wealth of information about portfolio
protection, which investments to own and how to take out Catastrophe Insurance
on the stock market (this “insurance” paid out triple digit gains in the Autumn
of 2008).

 

Again, this
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and click on FREE REPORTS.

 

Prepare Now!

 

Graham
Summers

 

PS. We ALSO
publish a FREE Special Report on Inflation detailing three investments that
have all already SOARED as a result of the Fed’s monetary policy.

You can
access this Report at the link above.