General Stock Ideas

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US dollar in trouble -


US dollar futures fell thru near term support dramatically on Friday with a big red candlestick, down over 1%. The Dollar Index (DXY) dropped thru the Sept support level (intraday low of 91) and closed right at the low of the day (90.9), a bad sign.
Once 90 is breached it's a long way down, next support is 85 and then 80 area. The Fed is raising rates and plans to raise for 2 more years, so the dollar should be rising or at least stable, but it isn't.

While the tanking dollar is great for gold/silver, the reason to worry is that we know a big dollar crisis is inevitable at some point, and the global elites are planning to transition from the dollar as the world's reserve currency to the SDR/Special Drawing Rights.

The key props under the dollar are being removed and the transition process is underway. Jim Rickards outlined how on Jan 1st 2018, the IMF began to facilitate countries who hold US dollars to convert them into SDRs using a new DLT/Distributed Ledger system. Not good folks, if you live in the US (see link below).

Countries are already not buying US Treasuries like they were in previous decades (China, Japan, Arabs, Europe), and this reduced demand comes right at the time the Federal Reserve itself is scaling back their own purchases by instituting QT/quantitative tightening. QT started in October and will ratchet up to an annual rate of $600 Bil fewer purchases by the Fed by late 2018 (which includes Treasuries and Mortgage Backed securities). Who is going to take up the big overhang?

The other related prop under the dollar has been the Petrodollar system, set up in the 1970s after the collapse of Bretton Woods. Having global oil sales in dollars and only in dollars is what kept the entire dollar global reserve system viable for the last 40 years. But more and more countries are abandoning the use of dollars for oil, and not just oil but other commodities. These countries will no longer need the trillions of US dollars they've had to hold and they'll be able to cash out in favor of gold and the SDR.

War breaking out with Korea might boost the dollar temporarily, but on the other hand it might be the catalyst for a global financial crisis. Not good folks, it's going to be a crazy year.


IMF facilitates transition from dollars to SDRs -

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=137312697