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The US $ Collapse is coming soon

|Includes: SPDR S&P 500 Trust ETF (SPY)

The US $ has been strengthening in the last few weeks and have touched the 200 day moving average that was seen last in March 2009. We are seeing the Equity markets across the world correcting and the unwinding of the $ carry trade in the emerging & commodities markets.

The $ bulls continue to say, the $ is the only accepted global currency and the world will buy the $ at any cost. This equation is surely going to shift soon. The US is in huge debt and they go on printing notes to stay afloat. We have seen early signs of foreigners not active in buying up the US notes & bonds actively. In turn the emering markets are increasing gold reserves. The US President in his state of union address has signaled winding down of stimulus and made it clear they may not buy their own debt ! The Stimulus debt to the tune of $ 1.25 Trillion is up for sale and if the US & foreigners don't buy into it, we may see a huge CRASH in the US $. This will be one of the moves that can get the global economics back to shape and cal also collapse the US & developed countries.

The EU too is in trouble with countries like Spain,Portugal,Greece,Italy & UK running un manageble debt. Who will bail them out ?

The above factors can trigger the next big fall in the global reserve currency the US $. This can trigger off a big crash in the stock markets globally.



Disclosure: No positions