US Dollar Testing Long-Term Support

By Mike Golembesky – Re-Blogged From http://www.Gold-Eagle.com

The US Dollar has continued to fall hitting a low of 92.72 on Monday, July 31st. The US Dollar also broke through shorter term support levels and is now closing in on long term support that could very well define the longer term trend over the next several years.

When most financial writers (to which I include myself) refer to the US Dollar they are typically referencing the DXY index. The DXY index is composed of 6 currency pairs that are based mostly in Europe. The Euro vs. the US Dollar makes up 58% of the DXY index with the Great British Pound, Swedish Krona and Swiss Franc making up an additional 19.7% of the index combined.

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US Exorbitant Privilege At Risk?!

By Axel Merk – Re-Blogged From http://www.Gold-Eagle.com

If the road to hell is paved with good intentions, American’s exorbitant privilege might be at risk with broad implications for the U.S. dollar and investors’ portfolios. Let me explain.

The US was the anchor of the Bretton Woods agreement that collapsed when former President Nixon ended the dollar’s convertibility into gold in 1971. Yet even when off the remnants of the gold standard, the U.S. has continued to be the currency in which many countries hold their foreign reserves. Why is that, what are the benefits and what are the implications if this were under threat?

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The “Tactical” Nuclear Option(s)!

Bill Holter   Guest Post By Bill Holter

WOW! Two huge news stories within 24 hours. First, Russia decided to shut off the gas pipeline to southern Europe, next the Swiss dropped their 1.20 floor peg to the euro. The first story is absolutely huge but has been completely overshadowed by the Swiss. In my opinion, the Russian move is part of the “war” chess game, the move by the Swiss is your beginning to multiple resets leading into a complete economic and financial reset!

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