If the Dollar Breaks under 77.43…

..then an ending diagonal may be in play. Keep an eye out for this pattern if it breaks under the recent low. Read more….

Russia and India Question Reliance on Dollar Before G-8 Summit

Russia and India said the world economy is too reliant on the U.S. dollar and called for changes in how $6.5 trillion in currency reserves are managed, as Group of Eight leaders prepare to meet this week. “The dollar system or the system based on the dollar and euro have shown that they are flawed,” [...]

Dollar Drops as China Repeats Call for New Reserve Currency

The dollar fell against most of its major counterparts after China repeated its call for a supranational currency “delinked” from sovereign nations. The greenback headed for its biggest weekly loss against the euro in four weeks after the People’s Bank of China said the International Monetary Fund should manage more of members’ foreign-exchange reserves. A [...]

U.S. Beats War Drum as Iran Dumps the Dollar

The seemingly ever escalating rhetoric against Iran by U.S. officials took another step forward today. A senior military official leaked to the press plans to publicly reveal the evidence of weapons caches found in Iraq which can be directly traced back to Iran. The types of weapons found such as roadside bombs are believed to [...]

US Dollar Correlation to Gold Signals Risk to Longer-Term Trend

The correlation between the US Dollar and Gold prices has picked up considerably as of late, as a fear of excessive US fiscal and monetary stimuli have increased the lure of gold as a hedge against dollar weakness. In fact, the 20-day rolling correlation between the Euro/US Dollar and COMEX Gold futures now stands near [...]

Suitcase with $134 Billion Puts Dollar on Edge

It’s a plot better suited for a John Le Carre novel. Two Japanese men are detained in Italy after allegedly attempting to take $134 billion worth of U.S. bonds over the border into Switzerland. Details are maddeningly sketchy, so naturally the global rumor mill is kicking into high gear. Are these would-be smugglers agents of [...]

The American Empire Is Bankrupt

This week marks the end of the dollar’s reign as the world’s reserve currency. It marks the start of a terrible period of economic and political decline in the United States. And it signals the last gasp of the American imperium. That’s over. It is not coming back. And what is to come will be [...]

U.S. Dollar: the Good, the Bad and the Ugly

Russian President Medvedev suggests the dollar is on its way out; Russian Finance minister Kudrin says there is no substitute for the dollar. The Chinese see a need to diversify out of the dollar; the Japanese say their trust in the dollar is unshakable. Let’s look at this puzzle and make some sense of it. [...]

Dollar Poses Dilemma for Bric Countries

Brazil, Russia, India and China, collectively known as the Bric countries, are holding their first formal summit in the Russian city of Yekaterinburg. On the agenda is the role of the dollar and its status as the world’s dominant currency. China, Russia and, to a lesser extent, Brazil have expressed a desire to see the [...]

De-Dollarization: Dismantling America’s Financial-Military Empire

The city of Yakaterinburg, Russia’s largest east of the Urals, may become known not only as the death place of the tsars but of American hegemony too – and not only where US U-2 pilot Gary Powers was shot down in 1960, but where the US-centered international financial order was brought to ground. Challenging America [...]

$ Index, Short but Near Term Positives Appearing…

In the May 28th email on the $ index, affirmed the short position (sold on April 27th at 85.60), but warned that further new lows below 79.80 may be limited. The market did indeed weaken from there, reaching a new low at 78.35 this past Wednesday, and before quickly bouncing…. Read more….

Malaysia and China Mull Ending Trade in Dollars

Malaysia’s prime minister said his country and China are considering conducting their trade in Chinese yuan and Malaysian ringgit, according to a published report. “We can consider whether we can use local currencies to facilitate trade financing between our two countries,” Malaysian Prime Minister Najib Abdul Razak told reporters at a briefing Wednesday, according to [...]

Follow the Money… Out of the U.S. Dollar?

Recently, stock markets appear to have experienced an almost euphoric phase, seemingly shrugging off most negative news flow day after day. Whether or not you believe in the so-called “green shoots” of economic recovery, a significant economic rebound, or a continued decline in economic activity, one thing seems abundantly clear: investors have been becoming less [...]

Dollar Hovering at Cliff’s Edge

Is the dollar about to collapse?  We’ll know soon enough, since the U.S. Dollar Index fell yesterday to within a hair of an important correction target that we flagged for subscribers a couple of weeks ago. The actual target was 83.45, a Hidden Pivot support that lay just 0.05 points beneath yesterday’s actual low. We’d [...]