HK_L61

DX / DXY / US DOLLAR

TVC:DXY   U.S. Dollar Index
Memories are Short.

Trading FX when the DX was over 120 was
an Indicator for me to Purchase Physical Gold
and Silver.

Debasement and "Traditional" correlations would
hold with respect to overall Credit up until
2008, thereafter... the Blow off to the Futures
Price then was 1913$.

Gold had begun to lose its "Store of Value" Function
well ahead of the Peak in Prices which lasted for one
Decade.

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The Dollar remains the Debt Instrument Du Jour for Debts
Public and Private.

The Dollar lost a number of years later when Roosevelt
decreed owning more than 5 Ounces in any Household was
illegal.

Redemption was ordered and Gold was remonetized from
$20.70 to $35, a significant devaluation for the Dollar.

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This is no longer possible, neither is the remonetization of GOLD.

To be clear, this is not to suggest Gold will not gain in Price, it
indeed will, but its Value will be for Tier 1 International Trade
sanctioned by the BIS @ SDR Divisors.

The Public... will face confiscation of the Yellow Metal. It has
throughout recorded History. It will again.

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While the statistical relationship between returns on US stock markets
and changes in the value of the Dollar has historically ranged between
.93 and .97

FX fluctuations indicate a much higher correlation between the volatility
of returns on US Equity Prices and the volatility of Dollar exchange Rates.

Historically - a 1% increase in Equity Complex VX correlates to 0.2% increase
in the volatility of the Dollar - for Decades.

This is no longer the Case as the Dollar remains the Currency of Senior
in a Late-Stage Credit Cycle.

Volatility, however, is Highly Correlated with OVERALL Liquidity.

In 2008 the DX rose from 84 to 97 as the S&P lost 47% of its
Price Level.

The FED needs a Strong Dollar - to is a precursor for what they
have in store...

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Creating Electronic "Currency" and installing a New Monetary (Credit as Money
has Died, the "Moneyness" of it) - require Instability & Disorder.

it is that simple.

Order from Choas - the Fabians.

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How does "Chaos" unfold?

Today - it can occur in less than one second with an inter-connected Global
Financial System which is crumbling in every way.




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