Sunday, February 22, 2009

US Dollar Collapse - Green Fellow holds medicine from Depression Misery. DIA, SPX, QQQQ, DXY, TSE, CDNX, FXI

US Dollar has made a perfect Double Top formation with weak second top on RSI and MACD, Slow STO is turning negative. It is one of the most important negative divergencies now: Dow has broken down from November Lows, Dow theory made Sell signal lst week, but dollar has been sliding last two trading days. Do we have finally "normal" fundamental picture in place: when all troubles of USA Corp should send its common stocks US Dollars sharply lower? Break up from this formation above 92 will spell Big Trouble Japanese style, Depression, Deflation and we will be blessed if Dow will stop its waterfall at 5000 in a second Major Bear Leg down. Deflation means trouble for the most indebted nations, Inflation and collapsing dollar is the only medicine from reckless practices and corrupt Agents. It could help to keep Dow above the 7500, pretend that banking system is solvent in one way or another, prevent Deriviative weapons of mass distraction launch over economy and water down with debasing of its currency Liabilities in the form of Government Public Debt and Unfunded social security liabilities above 60 trillion dollars by some estimations. And do not get us wrong here, we are not smart enough to tell what to do, only to point out what must not be allowed at any price and it looks like Obama has decided that Americans are ready to pay. Gold has already pronounced what Mr Secretary can not spell out: Devaluation of US Dollar is not the future it is happening. Budget Deficits close to 2 trillion at over 16% of GDP are not boiling together with fiscal discipline. Empire is collapsing on all fronts and becoming social bailout nation when losses are nationalised and profits are allowed to keep private. Stimulus is a Joke, 2 trillion TARP2 will be plus to Deficit already above 1 trillion, States are turning back to FEDS for bailouts and Bill Gross has estimated in January it will cost another trillion.
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