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USD – Why Rick thinks we could see 120 on the USD index

Cory
September 13, 2017

Today Rick Ackerman and I focus on the USD. Rick has some comments on why he thinks the dollar will rise to his target of over 120 on the dollar index.

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Discussion
37 Comments
    Sep 13, 2017 13:26 AM

    They simply can’t and won’t pay appreciating dollars back. Period.
    So thinking it through, if you can’t pay your debts back your higher dollar theory is not going to happen.

    It is not in the worlds interest for a strong dollar.

    Sep 13, 2017 13:42 AM

    The UK is choc full of people from across Europe – they wouldn’t be in the UK if there was work for them back in France, Spain, Greece, Portugal, etc, etc.

    Strong Euro makes no sense to me whatsover.

      CFS
      Sep 13, 2017 13:10 PM

      I believe Arabs and Africans are flocking to the UK because they can have a much improved life just living of welfare…..so who needs a job? Besides many have relatives/friends there too.

        Sep 13, 2017 13:09 PM

        Yes, that is the firghtening problem – because Labour politicians since tony blair have encouraged it.

        These people have come in staggering numbers, doo not speak English, do not have jobs or skills and are being housed, schooled, looked after by the NHS, given benefits, pensions and they make NO contribution whatsoever.

        They are reaping all the above benefits whilst they have never paid anything in – either financially or in terms of creating the British identity.

        Even worse, they are islamic and they are hell-bent on turning everywhere they go into some islamic hell-hole.

        I don’t care what colour someone’s skin is – black, brown, white, pink, yellow, olive, grey. I don’t care whether someone is a Sikh, Hindu, Christian, Jew, Atheist, Agnostic or a Jedi Warror but, bluntly, what islam is doing to thr UK and Europe fills me with a dread and anger.

        America is not as far along this hellish road as the UK is so I implore all Americans to speak out and fight back against the US ending up like the UK.

        Sweden is lost. Belgium is lost. France is lost. Germany will be lost eventually.

        Sorry, rant over.

          Sep 13, 2017 13:10 PM

          Great rant, BOB. It echoes mine. Within the next 20 years the uk will have a muslim prime minter…IMO.

            Sep 13, 2017 13:11 PM

            OOOPS…minister

            Sep 14, 2017 14:37 PM

            Glad you corrected your comment, Irishtony …

            Everyone knows that the prime minter is in the US. (we can mint better than anyone … USA USA USA).

            Rest of the world … please keep buying our treasuries … thanks!

          CFS
          Sep 13, 2017 13:21 PM

          Bob UK,
          The frightful thing in the US is that there are already some scattered no go Islamic zones.
          Detroit and other parts of Michigan for example. Even parts of Texas.

    Sep 13, 2017 13:49 AM

    Here’s Gary’s thoughts on the markets: http://news.goldseek.com/GoldSeek/1505305620.php
    It’s somewhat comical that Rick’s personal experience with Denver’s real estate market can imply a market top! Maybe he was simply overpriced!

    Sep 13, 2017 13:50 AM

    Rick, where do you see gold going in the near term and medium term with what you see happening in the dollar?

    CFS
    Sep 13, 2017 13:03 PM

    Fact: World economic data has been improving for over a year.

    Don’t believe me? Look up the Baltic Dry Index, which bottomed out in Feb, 2016, and has gone up by over a factor of four since bottoming.

    I don’t doubt Rick is one of the best Technical Analysts, but I have long worried about his deflationist position.

    I wonder about the low velocity of the dollar. Is it due to the combination of multiple QEs and high debt level all over the world, which produces plenty of banking liquidity but a reluctance of banks to lend because of lack of credit worthiness everywhere.

    Many pundits have been talking about a default in the dollar system, which I have always thought impossible because of the existence of both digital printing and failing that a physical printing press.

      Sep 13, 2017 13:06 PM

      sorry, this is same as silverdollar. post…………..

      Sep 13, 2017 13:10 PM

      Hello……..is this the start of what is to come from the new commissioner at the cftc…….

        Sep 13, 2017 13:17 PM

        Maybe to hopeful ………

    Sep 13, 2017 13:22 PM

    Fake News for the weather channel………..
    http://www.market-ticker.org/akcs-www?singlepost=3427395

    Sep 13, 2017 13:24 PM

    People have talking about the dollar crashing into the 60’s as mentioned on the weekend. It is still in an uptrend and could rally within weeks or a few months as it is never that easy for gold to keep going up and up.

      GH
      Sep 13, 2017 13:04 PM

      A relief rally does seem likely.

      With the dollar’s recent lower low, I don’t really consider it to be in an uptrend.

      If the Dec 2016 peak was a 15-year top, the dollar may give an uncommonly steep drop with few rallies. That’s what happened after the last two 15-year peaks, anyway.

        Sep 13, 2017 13:10 PM

        Yes it is looking like a downtrend in the short and medium term but it is close to the 200 day so hard to tell which way it will go.

      Sep 13, 2017 13:14 PM

      It is in a downtrend within a larger uptrend within an even larger downtrend. Two outta three ain’t bad for us bears.
      Each rally attempt so far has been feeble and that has bigger picture bearish implications. Nevertheless, a decent bounce is probably coming soon (now that all the bottom callers have been wrong more than once).

      http://stockcharts.com/h-sc/ui?s=%24USD&p=W&yr=10&mn=0&dy=0&id=p36154364713&a=544367839

    CFS
    Sep 13, 2017 13:31 PM

    I assume the Euro’s drop and the US dollar’s rise today had little to do with fundamentals and technical analysis, but more a temporary reaction of the City London bankers to Junker’s bellicose anti-brexit pro-United States of Europe speech.

    13 SEPTEMBER 2017 • 6:38PM
    Jean-Claude Juncker today called for an ever-more powerful, larger European Union headed by a directly elected EU president and warned that Britain would “regret Brexit”, in a defiant speech that was branded a blueprint for a United States of Europe.

    “I have lived the European project my whole life,” Mr Juncker declared as his outlined his federalist vision of common EU policy on defence, foreign policy migration, trade and economics and every country adopoting the euro. “I have lived it and fought for it through good times and bad times.”

    Mr Juncker called for a summit on the day after Brexit in March 2019 in the Romanian city of Sibiu to map out the future of the EU. He insisted the “wind is back in Europe’s sails” despite deep divisions across Europe on eurozone reform, enforced migration quotas and an East-West split over democratic values……….

      CFS
      Sep 13, 2017 13:40 PM

      I make the above supposition solely based on the timing of Euro drop….dollar rise….gold drop, in conjunction with the time of Juncker’s speech.

      Had it been due to Chinese concern over their currency getting too strong, or due to American manipulation, the timing would more probably have been slightly different.

        Sep 13, 2017 13:43 PM

        +1

    cmc
    Sep 13, 2017 13:50 PM

    Hi Mr. Ackerman,

    I think VXX hit one of your “pivot points” today. Where do we go from here?

    Sep 13, 2017 13:32 PM
      Sep 13, 2017 13:33 PM

      maybe we move to ….”chip backed dollar.”……….

    Sep 13, 2017 13:49 PM

    http://www.zerohedge.com/news/2017-09-13/watch-amazon-deletes-hundreds-one-star-reviews-hillary-clintons-new-book

    Book not doing so hot……more Hilly and Amazon tag team……both liars….

      Sep 13, 2017 13:52 PM

      Makes you wonder if the Dollar chart is real…….or made up…..who knows for sure.

    Sep 14, 2017 14:33 PM

    Rick Ackerman’s forecast of what he sees happening to the dollar is brilliant in terms of all of the forces at play as well as how he sees everything unfolding.

    I wish I knew the timeframe that he has in mind, though, as it would make all the difference (as they say).

    Personally, I think that capital flow may be the trigger in all of this, with a sovereign bond crisis hitting outside of the US, causing inflows into “safe” instruments, like US treasuries.

    For a near-term view of a potential catalyst, there was an interesting discussion on the EU bond market in the following podcast: https://capitalistexploits.at/2017/08/julian-brigden-talks-macro-with-chris-macintosh/

    Unfortunately, I don’t have the financial acumen to appreciate all of this and am trying to assimilate the views of all of these astute commentators … one of whom is Rick Ackerman, as I really think he has a fundamental grasp of all of the forces at play here.

      Sep 15, 2017 15:22 PM

      I found the following video from four years ago that had some great information, titled “Financial Crisis, International Capital Flows and Investment Strategies in Uncertain Times”: https://www.youtube.com/watch?v=eaKOLgNR8ks

      The first presenter had a great point about country balance sheets and types of assets. She said that the US in the last crisis (2008) had a balance sheet like a banker with risky assets on one side (credit, e.g. financial obligations) and safe assets on the other (debit, e.g. treasuries). When the crisis hit there was a multi-trillion markdown of risk assets which equated to a corresponding transfer of assets to those holding safe assets who were (mostly) the foreign holders of these assets.

      The second speaker also had much to say about flight to safety capital flows and how it related to the bond markets.

      Anyway, I am hoping that all of these bits of information will help my understanding in terms of how things may play out when the next crisis hits.