Here is a daily chart of the US Dollar Index going back to May 2010. It is easy to see the long term lower highs that was produced over the last 1.5+ years,,,,,at least until last week.
The $81.42 produced last Wednesday took out the last break high of $80.43. Technically, it is now producing higher highs and higher lows, at least for the short/mid term. Since the USD is viewed at the 'reserve currency', many people flock to it when all other assets seem very risky. That is just the way it is and we may see a short term uptrend as people do not know where to put their money. (Gold is in a bubble right? so why buy it)
It's hard to believe that people want to purchase the USD especially with all of the digital 'money' the Federal Reserve and this government has produced over the last 3 years. TARP, QE2, Operation Twist, Military Spending Bill (662 Billion), ect... It's just a matter of time before it reverses the trend and starts producing lower lows and lower highs. Do you think inflation is bad now? Just wait a few more years...
It's hard to believe that people want to purchase the USD especially with all of the digital 'money' the Federal Reserve and this government has produced over the last 3 years. TARP, QE2, Operation Twist, Military Spending Bill (662 Billion), ect... It's just a matter of time before it reverses the trend and starts producing lower lows and lower highs. Do you think inflation is bad now? Just wait a few more years...
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