Gold Time Box; Dollar Time Bomb

US Dollar Time Bomb Chart

  • The dollar’s legs are being cut out from under it, by the Federal Reserve and the US government. QE, by design, is set to reduce the dollar’s value.
  • Part one of the bear market rally in the USD is completed. I expect the dollar to have difficulty moving much higher than 80.50. Last Friday marked the end of the month, and the quarter, but the dollar could not close above this key price point.
  • My timeframe (time bomb) analysis suggests that sometime around Oct 16th, you will see the highlighted bear flag top activate, and the dollar will begin a severe decline. My downside target is 74.72. A very strong move higher in precious metals should commence at the same time…

Forecasters more often than not get the direction correct.  Less frequently they get the magnitude correct.  Seldom do they get the timing correct.  IMHO the above predictions are definitely correct directionally.  They might be correct as to magnitude and timing, but there are many possible intervening events.


The recent decision by the US Federal Reserve to contaminate the financial body until it responds favorably was the last straw in my book. Witness a declaration of permanent QE and hyper monetary inflation of the most virulent strain, unsterilized. The USFed is essentially admitting failure. The signal serves as the loudest death knell for the USDollar among many in a sequence.  The QE bond monetization of USGovt debt has turned viral and entrenched. It is sold as stimulus, when in fact it acts like a giant wet blanket on the USEconomy. It is intended as stimulus to businesses, but the effect is felt on the financial speculation and on Asian direct business investment. In the past the emergency lever device had been successful only because it was used on a temporary basis. But now the USFed high priest assures it is a permanent fixture, a sign of their failure.

The money is not finding its way into the USEconomy for further circulation. The plague is insolvency, soaked by endless applications of tainted money from central bank fire hoses.


Gold market instability could be a tremor before a burst upward. The same appears true for the silver market. On a single day last week, JPMorgan dumped two years worth of US silver mine output in the form of paper silver supply on the COMEX market. The corruption went largely unnoticed. They defend the important $36 level. A powerful USDollar decline is imminent…


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