The U.S. Dollar collapsed sharply today after
Secretary of the Treasury Steven Mnuchin said the United States
wanted a weaker currency. This statement comes after the U.S.
Dollar has already fallen sharply since President Trump took
office. While a weaker Dollar inflates asset prices which is likely
the reason for the comment, it hurts lower and middle income
Americans as buying power degrades and inflation jumps higher.
Anyone who is not invested heavily in the stock market is seeing
their real buying power drop with oil prices surging and other
prices jumping in response. Investors on the other hand are loving
it. Those with millions and billions invested in the stock market
are noticing that every time the Dollar drops, the stock market
jumps higher. In fact, it can be argued that there is a bubble in
the stock market because of the weaker Dollar. The bottom line is,
we should all be careful of this uber weak Dollar policy. There
will be repercussions in the future for all
Americans.
In looking at the stock chart, it clearly shows the
exact spot it will fall to. Using the Dollar ETF $UUP, the U.S.
Dollar will hit major pivot highs from 2012 and 2013 at $23.00.
That means there is still some near-term downside because a
technical support is tagged.
Lastly, please be aware that just like with Federal
Reserve policy on massive money printing and how global central
banks followed suit, other governments will start to devalue their
currency in response. This ultimately is a long-term positive for
gold, silver and Bitcoin.
