click on charts to enlarge
The U.S. dollar has begun to break down. Take a look at the two charts above. the top chart is the past week's dollar action. As the week progressed the dollar came under increased selling pressure culminating in a major breakdown on Friday. It was no coincidence that Treasurys were tanking as well with yields being driven skyward. The bottom chart is the past 12 month dollar chart which gives us a longer term view of dollar action. The chart is very ominous to say the least.
So what is the dollar and bond market telling us? The start of an inflationary dollar crisis may be at hand. Foreigners may have begun selling U.S. dollar denominated assets. If it traded in a free market gold would have soared this week based on dollar, bond and commodities action. Government can't have Gold rallying, it would upset their Orwellian confidence game. The blatant manipulation and intervention in the gold market this week was as obvious as I have ever seen. -Lou
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