Captain_Walker

Is the US Dollar dying or dead?

Education
FX:USDCAD   U.S. Dollar / Canadian Dollar
In this very busy chart, I compare 6 forex pairs. It needs some study. What seems clear to me is that the USD strength has been heading south manly since March 2020.

This is not unexpected of course, following the FED's money-printing spree, now called QE infinity. I'm not here to say whether that's a good thing or a bad thing.

The overall effect of a weak USD is to keep the US stock indices afloat. I'm not saying that is an intended effect of what the FED is/was doing.

I think the effect is dangerous on both Bond and Stock markets, because at some point people or banks are gonna wake up and wonder 'What's the value of money?'. In a sense that's already happening, as in other posts I've shown that there is movement of value into metals and Bitcoin .

The above are speculative opinions that may well be wrong. This means that you ought not to make decisions based on anything I say.

Disclaimers: This is not advice or encouragement to trade securities on live accounts. Chart positions shown are not suggestions. No predictions and no guarantees supplied or implied. Heavy losses can be expected if trading live accounts. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
FED balance sheet 42% of GDP @ 2020-01-26. Does money have value anymore? [Different perspective on the virus https://youtu.be/NjTdvALChwk ]

Comments

Great Job and makes sense.
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amazing ...i like your hard work
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@Digger21, Many thanks for your appreciation.
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Really awesome work
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Good post. Thank you for contributing to the site. Glad you said it was busy :)

"What's the value of money" <- It is interesting isnt it. I was always taught in economics that a deficit especially at such levels is a bad thing. Crazy how many money has been pumped into local economies globally by governments trying to prop the system up.
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@AngusMcK, The main thing is 'value'. Money is just a thing we invented to attach value to. So is Bitcoin. There is a big problem for the financial system if value moves consistently into something such as Bitcoin. Metals always held value throughout history. So if this change we're seeing now is sustained - where value moves consistently into alternatives to fiat currency - that heralds bad news for the world's financial system. If/when money as we know it comes to hold little or no value, there will be chaos.

This is good insight https://youtu.be/bgPDW0ZpgJU?t=91 (I'm not vouching for accuracy). The abolition of the gold standard, way back, then Nixon's move was important.

I found the whole of this talk so very informative https://youtu.be/fjhLp8AHAYc?t=2042 (especially at this part).
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