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Crisis Time? Dollars’ Worst Drop In Nearly 2 Years

The conversation is swelling across the globe: once again, it’s crisis time.

The dollar is suffering its biggest 2-day drop in 19 months. But, Reuters says it’s cool, uptrend intact.

State-controlled Press TV, on the other hand, says the dollar is over.

Japan, the dollar, Syria, Russia…

…Peace in Baghdad, Afghanistan, Lybia?

…We know Japan’s bond market is doing poorly, but how about the radiation. They cool with that?

CNN reports this morning that despite Japan’s jitters, US stocks have not been shaken. No word on Fukushima.

But, the US dollar and precious metals prices certainly have been shaken.  Bitcoin is right there alongside precious metals, although it seemed a little bit more clever to the panic, sliding upwards over the previous three sessions.

Gold shorts are essentially at the same peak low as in 2009, before gold ran from $900-$1920 scantily pausing for a break. From $1300? One could easily suspect that $1,600 is right around the corner.

$46 silver doesn’t seem that unlikely should go do that.

Check out the gold shorts, denoted by the green line for this exercise:

Timeframe: 5 minute | hourly | daily | weekly

Off 10% from its peak, Japan’s Nikkei has not proven sustainable. Thirty years into a depression, Japan has lived up to its expectations, which have been low.

On this day, despite a yawn from the US stock market, precious metals and the US dollar told the story.

From state-controlled media such as Reuters to Press TV, two very different pictures of the future of the dollar were outlined. Press TV foresaw the end of the dollar.

In the former, Reuters contended that, despite the drop in the USD index of about 2%, the USD uptrend remained intact.

The dollar was down across all indexes, for people are extricating themselves of “positions across the board.” Investors are getting out of the USD; they are getting out of the stock market; they are getting out fiat currencies in general.

And, if you believe at all in supply-and-demand, the action of gold silver, platinum and palladium over the past decade – and by doing so, you’re really just looking at the action of humans – you’ll see that there is buying support.

Bitcoin, since 2009, has been even more dramatic. There is no doubt that, if the protocol and its protections prove invincible, then demand will be stalwart.

Even though short positions in yen increasing, and dollar longs also increasing, the dollar could not find its footing.

The dollar lost 1.3 percent against the yen to trade at 101.08 yen. Against the Swiss franc, the dollar slid 1.5 percent to 0.9619 franc.

Even through a picket fence, one can see the other side. And from behind the blinder of economy, we peer through and see what’s there: gold, silver and bitcoin.

The pops today in gold and silver were familiar. It was the sort of evening and morning which younger gold and silver bugs used to stay up all night/wake up early for. This pop of last night and today carried an excitement reserved as of late for Bitcoiners.

The inverse story of today is also familiar: one in which the US Dollar has traded down. This is the true root of the rise in the metals on this day. The dollar will trade up again, but over time as minds are released from the play of domination and subjugation, the USD will serve no purpose, and never trade again.

And then, things will be different.

 

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