Well, the US Dollar has staged a small bounce at $77 or so. The question now is whether this becomes anything substantial, or is merely a result of the Euro/USD pair becoming so stretched that a brief pullback had to happen.
We should know the deal within a few days. However, the greenback is now only 2% away from breaking its multi-year support line. If the Dollar turns down again now then the inflationary collapse will intensify rapidly.
I’m inclined to say that we may get a decent bounce here, possibly to 79 or so. The reason I say this is that while the US Dollar is so close to breaking CRITICAL support, the Euro (which comprises over 50% of the US Dollar index) remains well below its multi-year downward trendline:
Ultimately all of this is just question of which paper currency will collapse first. From a fundamental standpoint the Dollar is more sound than the Euro (the Dollar is backed by the US Government while the Euro is backed by… ???). However, the US Dollar also happens to be under the watch of a man who thinks nothing of killing a currency (and indirectly people via soaring food prices).
Indeed, only one currency continues to soar to new highs and is actually increasing purchasing power and that’s Gold. So if you own Dollars OR Euros, I strongly urge you to consider moving some of that paper into the Ultimate Currency.
After all, wouldn’t you like to own something that Ben Bernanke and Jean Claude Trichet didn’t control?
PS. If you’ve yet to take steps to prepare your portfolio for the coming inflationary disaster, our FREE Special Report, The Inflationary Holocaust explains not only why inflation is here now, why the Fed is powerless to stop it, and three investments that absolutely EXPLODE as a result of this.
All in all its 14 pages contain a literal treasure trove of information on how to take steps to prepare AND profit from what’s to come. And it’s all 100% FREE.
To pick up your copy today, got to http://www.gainspainscapital.com and click on FREE REPORTS.