China’s Dagong Downgrades U.S. Credit Rating

China’s Dagong Global Credit Rating Co. cut its credit rating for the U.S. to A+ from AA because of a Federal Reserve plan to purchase bonds to spur growth and inflation, according to Xinhua News Agency. The credit outlook for the U.S. is negative amid deteriorating debt repayment capability and a “drastic” drop in the [...]

Citigroup Rule Model Says Central Banks May Sell U.S. Dollars This Month

Central bank reserve managers may be net sellers of U.S. dollars this month after the conditions activating a trading rule were met, Citigroup Inc. said. The dollar fell last month; reserve managers increased their currency holdings, on a valuation-adjusted basis, and by more than the previous month, meaning dollar sales are likely in November, Steven [...]

Dollar at Risk of Becoming ‘Toxic Waste’

The dollar’s slump could get far worse if the dollar index takes out last year’s low, Robin Griffiths, technical strategist at Cazenove Capital, told CNBC Monday. “If the (dollar index) takes out the low that was made roughly a year ago I really think that will not only encourage more sales, it will cause a [...]

Gutting the Dollar is Now Official

It’s official now. The Fed said it in their meeting notes. And Bernanke said it again on Friday: He’s going to run the money printing presses. It’s the same trick we’ve seen in countries like Brazil, Argentina and Russia. It’s the age-old tactic of GUTTING THE CURRENCY — this time targeting the most important one [...]

Dollar Set For Sharp Decline, Goldman Forecasts

The dollar will embark on a sharp decline over the next 12 months, Goldman Sachs forecast on Wednesday, as policy makers in Washington look poised to press the trigger on another round of printing money. The investment bank expects the dollar to drop to $1.79 against the pound in six months and $1.85 in 12 [...]

U.S. Dollar is ‘One Step Nearer’ to Crisis, Yu Says

The U.S. dollar is “one step nearer” to a crisis as debt levels in the world’s largest economy increase, said Yu Yongding, a former adviser to China’s central bank. Any appreciation of the dollar is “really temporary” and a devaluation of the currency is inevitable as U.S. debt rises, Yu said in a speech in [...]

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 [...]