The Day the US Dollar Died

Many currency analysts and traders do not the ask the question of when does the US dollar takes its aw ha moment in the near future. The highlight of this report is do just that. What would it look like on a chart? To ask the hard question that many people do not think about the impossible.

This type of event is a black swan event that many traders and analysts are not looking at. It is one that many survival blogs and conspiracy theorists tell people to get out the market completely. The problem with their assessment is off balance. At the Texas Trade Report, there is the better approach that highlights how to stay in the market and protect your and grow your wealth at the same time. Because investing is done for the long term.

Getting to the highlight of this report, it is one that we can look at and ask the question. We can see what we can do to benefit from this type of event and grow our wealth from every day trading, too.

The key part is to look at the US Department of Labor statistics for the new jobs statistics not ADP report and pay attention the unemployment claims statistics. We can use the old method of calculating unemployment before it was changed in the 1990s. This old method will more accurately show what is really happening in the US economy. We need to pay attention the DXY and bond market for the bond yields for this type of event. Many analysts are not paying attention and cling to the US dollar  as sign of patriotism. But, you have to separate the US economy from the patriotism . You can still be patriotic,but you have look at things from a realistic prospective. Just look at the charts. We know that the US for all practical purposes is a great deal of debt in the neighbor of $100 Trillion instead of $16 trillion if you count in the future obligations such Medicare and Social Security. I am using David Walker,former Comp Controller General's numbers

David Walker,United States Comptroller General from 1998 to 2008

 For this type of trade, you have look at the USD/JPY currency pair as well as the DXY and FXCM Bloomberg US Dollar index. You have to monitor the Federal Reserve's actions at the policy meetings. It is my belief that in the first time in history where the US Dollar and S & P have lined up perfectly.



Also, you notice the USD/JPY currency pair  has been in downward trend for a long time on a monthly chart is getting ready to plan its next leg down. If the type of event were to happen, I would to have sell order ready to go. This type of trade takes long time and longer than most traders are willing to wait for. The S & P Index is a reflection of risk in the markets.

S & P Index

  It is currently trading at 1798.44. As it goes higher, the question begs to ask does this seem like bubble. My answer is absolutely. I am watching the gold and silver even they have been classified as risk assets by analysts. I take the opposite view and say they are safe haven assets in a very traditional sense. When investing in precious metals, you have to take the long term approach to what is happening. I do invest in precious metal from my trading profits roll them over into gold,silver and platinum. This a part of my overall strategy long term. As I look for trade opportunities from the currency markets, I know that government have reckless monetary policies in place and hedging my bets.





Which is why I buy all of my bullion from Regal Assets. The US economic can paper over the problems. I am proud spokesperson For Regal Assets. Many people want to protect their 401Ks and IRAs. I would say the best way to protect those accounts is convert them into gold and silver about 25% of it and have the rest managed by a financial advisers like Peter Schiff or Damon Vickers or even Jim Rickards. This protection that is sound.





Getting back to the  report, there would be a flight to quality on a grand scale that it would be swift and quick. You would see the USD/JPY currency pair head down very quickly to wipe the traders on the buy side of the trade. Many traders like myself would be on the sell side of this trade. When will this happen is anyone's guest, the taper from the Federal Reserve looks like a giant pump and dump. Right now, it is cat and mouse game with Fed's actions. While the markets appear to be going up, main street is going down. It where thing do not make any sense. When the taper does happen, the markets will overreact, but this little indication can't paper over the problems that been there for a long time in the US. The ah-ha moment will appear. When does happen all hell will break loose. The flight to quality would most likely happen and the Yen and Swiss franc and precious metals would be the winner along with stocks  have commodities  tied  to it like oil and agriculture would produce real value, as well. Examples are Exxon for oil ,Cheveron for oil, BP for oil, Archer Daniels Midland for Argriculture and any kind of companies that mine base metals or manufacture with the base metals.

The trade is one that many currency analysts and currency traders are not asking. This is one that I had to ask and researched it. It is likely in the near future that the asset bubble will pop and the US dollar bubble will pop as well in the future if the US does not get its affairs in order. There is a very real threat of this happening in the future. It would make the 2010 European Debt crisis and 1929 stock market crash seem like a cakewalk. It is one that I am especially paying attention to. The worst part is that the deposit currency in the trader's trading account is an inherit problem if it is based in US dollars, it will be wiped out. If a trading account has a deposit currency that is not USD based, then it will be ok. This why I took the precaution to have in different deposit currency because of things in the near future could turn ugly. Protection is peace of mind. Even famed Economist Marc Faber knows that the US economy is in trouble.




When it does happen? Many people will be taken by surprise when it does happen. If you are worried and want protect your profits and your hard earned money, then holding some physical gold,silver and platinum makes sense to a long term strategy. Also, I have link in the information section to get on board to invest in gold and silver. Regal Assests will be able answer those questions like rollover into precious metals. Just click on Precious Metals Investment and Asset Protection button in the information section of this blog.  This can be for anyone just starting out to the serious investor. Even people that have retirement accounts like IRAs and 401Ks can be roll into precious metals . They will gladly help you manage it.

Anyway, I shed some light on this topic and try to show some things. I hope to go into more detail in about it our regular trading reports that I am going to put out. It is helpful and helps people come up with an investment strategy that is sound. I know from my own experience and I am doing this myself. I am a serious Forex trader and precious metals investor. I know that protecting my assets is key in these weird and wacky times.

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