From the desk of Graham summers

How to Profit From the Coming Dollar Collapse

January 12, 2021From the desk of Graham SummersPick Up Graham’s Best-Selling Book Which Predicted The Crisis in 2017.Find Out What’s Coming For the Fed and the Markets Here     How to Profit From the Coming Dollar Collapse

The $USD in serious trouble. 

As I’ve been noting in recent articles, inflation is already in the U.S. economy. The last real bout of inflation the U.S. experienced was in the 1970s. At that time, the only thing that stopped the inflationary storm was Fed Chair Paul Volcker who raised interest rates to an astonishing 19%.Volcker was fired of the economic carnage this policy created. And since that time EVERY Fed Chair has been terrified of raising rates. Put another way, this time around, there is no Paul Volcker-type Fed official willing to do “whatever it takes” to stop inflation. 

Which means inflation is going to rage and rage.See for yourself.The below chart compares the performance of the S&P 500 to the performance of the Emerging Market ETF (EEM).When the S&P 500 outperforms EEM, this chart rallies, and when EEM outperforms the S&P 500, this chart falls. As you can see, this chart has been in a steady uptrend for the better part of the last decade (since 2011 to be exact). However, that uptrend appears to be ending.

GPC1621.png


This means we would be entering a prolonged period of Emerging Markets outperforming the S&P 500 (similar to what happened in 2001-2011). Why does this matter?Because historically this ratio has lead the $USD by several months.See for yourself. 

The below chart shows the S&P 500: Emerging Market ratio (blue line) overlaid with the $USD (black line). As you can see, the ratio between the S&P 500 and Emerging Markets has typically lead the $USD by several months.

GPC16212.pngSo if the S&P 500 : EEM ratio is about to take out its bull market trendine and start collapsing, this would mean we could expect the $USD to fall dramatically just as it did from 2001-2011.In simple terms, this would mean the $USD collapsing in a secular bear market as inflation erupted in the financial system. Precious metals would EXPLODE higher as would commodities, crypto currencies, and every other “weak $USD” play you can imagine.Those investors who are well positioned to profit from it could see literal fortunes.

Published by technofiend1

Kazan- Kazan National Research Technical University Казанский национальный исследовательский технический университет имени А. Н. Туполева he graduated in Economics in 1982

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: