US Dollar Forecast - Weakness

The rise in the US 10 yr has pulled up the US dollar, but soon the trillions of new money printing will soon pressure the dollar south.  us-dollar-forecast--weakness

We can see below the dollar 'T Theory' cycle suggesting we near done, and a period of change is due in the next 4 to 6 months. Notice how neatly the US dollar fits into even weekly time periods.  

The recent US dollar strength had to happen as everyone was short the US dollar, as the short energy for hitting the ASK BUTTON just dried up, these past six weeks have set up a nice bounce to smash the US dollar ASK once again over the next 4 to 6 months.

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MI2Partners posted this 20 year US Trade Weighted Index (TWI) model on Twitter, here

@MI2Partners In #macroeconomics, when you get the direction of the #USdollar right, the rest falls into place. Triffin’s Dilemma reminds us of the inconsistencies in domestic & international goals. The consequences for the #dollar will be profound

As you can see their forecast is for a new 20-year low in the TWI.

Of course, this (or just half of the crash) would create a hyperinflation risk-on rally, just like the DOW in 1929 or 1987, and just before US mid-terms. Hmmm, typical!

(Click on image to enlarge) US dollar model (below) suggests new lows for the DXY.

The main drivers are European banks are doing better (or less worse) compared to US banks, add on the comparison of core inflation between the US and Europe and lower DXY lows can be expected.

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CRAZY has not even started yet!

This is what a hyperinflation DOW blow-off top could look like, mapped with 1929 and 1987. DOW to 44,000 or 56,000. YES, this is what can happen at the end of an 80-year debt cycle.

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Of course, if the DOW can do something crazy like the above, BITCOIN is bound to go batty!

OH, Dear!

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