Sunday, October 5, 2014

Dollar’s sudden strength occurring as a sign the world is rejecting reserve currency

Approximately three months ago, the dollar began a massive rise in relation to other global currencies, with its value gaining more than 675 bps on the charts.  Closing out on Friday, Oct. 3 around 86.64, this is the highest the dollar has been since the middle of 2010 when the Federal Reserve began its first round of Quantitative Easing, and Europe was enmeshed in a liquidity crisis.
But while economists and government officials can go on the talking head programs and tout the recovery of the economy as the primary reason for the dollar’s meteoric rise, the real truth that is being hidden is that the dollar’s strength is tied primarily to the world rejecting the reserve currency, and shipping back dollars to the U.S. at an ever increasing rate.
 
 

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