posted on Sep, 5 2011 @ 08:32 PM
You may have luck on a long for the next few weeks perhaps while the Eurozone has a meltdown but you're focusing too much on the chart and not
looking at the extenuating circumstances - never a good way to trade.
The American dollar is being held up by Fed bond purchases - it's not a true demand for the dollar - there's tons of dollars and our government is
so deep in debt that there is no way in hell they're going to allow a deflationary spiral.
We'll see a flood of devalued currency before they let that happen.
Here's a fun example I saw today (figures are a little old - we actually owe more than $14.2 Trillion now):
Tax revenue: $ 2.17 Trillion
Fed Budget: $ 3.82 Trillion
New Debt (Deficit): $ 1.65 Trillion
Total National Debt: $ 14.271 Trillion
Recent Budget Cuts: $ 38.5 Billion
Now remove 8 zeros and pretend it’s a household budget
Family income: $ 21,700
Money the family spent: $ 38,200
New debt: $ 16,500
Total debt already: $ 142,710
Cut the budget?: $ 385
Would you be able to pay back $142,000.00 if you were making $21,700.00 a year and needed $38,000.00 a year to live?
Eventually the world is going to cut our credit card up...there's lots of games to play to keep the show going but allowing deflation is completely
counterproductive to holding the charade together...
When the world stops wanting the US dollar we will see run away inflation because we won't be able to give them away - not deflation.