Right On The Dollar: Devaluation Lining Up For The Fall?

10 and one 10 us dollar bill

Image Source: Unsplash
 

“Paper money eventually returns to its intrinsic value – zero.” 

~ Voltaire


Yesterday Dollarcollapse reader, Tom, wrote to me after my tip on the strength of Poland’s currency:

“thank you!

I’ll plan to move idle USD into the Zloty.

This has worked well for me in the past.

The Singapore Dollar is also a rock solid currency.

I spent half a day diving into it a few years ago.”


Yes, you can make money on foreign exchange trading even though you see those hype-filled ads on Facebook and YouTube.

It should never be a believable “ditch your 9-5” scheme.

For 99.9% of the world it is not.

Some, like our reader above, the trade is a source of securing and protecting wealth.

You store money in a strong currency, so as to avoid currency devaluation in the USD.

Let’s take a look at the USD.


The purple line is the 200-Day Moving Average.

It looks as though the 200MA is far above the current value, which could mean an incoming correction – is. the dollar is going up.

On the other hand, massive money printing during the pandemic lockdowns caused the dollar to dip down from 2020 until 2022 when the Fed started raising interest rates.


So, the opposite actually happens when the Fed lowers interest rates.

When the Fed lowers interest rates, the return on investment in USD-denominated assets(bonds) typically lowers.

In a steady market, one might assume the dollar will correct becoming strong once again, but we are not in a steady market.

Changes are coming in the form of interest rates, and…

Take a look at what QE did for the dollar during the Great Financial Crisis in 2008, and what’s happened every time the Fed has cut rates since the 80s.


Red line = Federal Fund Rate.

Orange line = DXY.

With rate cuts expected, and the possibility of the Fed implementing more QE like tools in the near future, we are probably looking at dollar devaluation to some extent.

Our friend, Tom, may be making the safest move yet…

While a move into gold would be even more certain to preserve your wealth.


More By This Author:

A Gold Exposé: The 60/40 Deception
Gold’s Moment Of Truth: It Happened Over 13 Years Ago. It’s About To Happen Once More
The REPO Act: A Precursor to the Dollar’s Downfall

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