Direxion Daily Gold Miners Bull 2X (NUGT)

[mannken]

Here is an easier to follow explanation

for people like me LOL

http://knowmadiclife.com/blog/2013/5/15/how-america-exports-inflation-explained-in-ten-easy-steps

The basis is countries take exported dollars through trade, take them out of circulation, put them in reserves for future energy needs (aka petro dollars), and so on.

I'm not a believer the global cycle will end anytime soon because Opec requires crude to be purchased in dollars. Also one gigantic factor is the dollar is backed by the US military (arms sales req'd in dollars, etc.). So you take energy and military might together, its hard to argue the dollar will collapse until countries no longer need it for whatever reason, then they put it back in circulation, causing devaluation and hyper inflation.

That's all conjecture and obviously somewhat useless for short term traders like me, but it's fun to chat about!