Is the US Dollar Predicting Another Deflationary Collapse?

Today at 12:30, we’ll know where things are headed.

Today at 12:30PM the Fed will release is FOMC minutes. With QE 2 ended in another week, the Fed June FOMC meeting was the last hope for bulls who believe the Fed is about to unveil another round of QE or some other additional liquidity measure.

As I’ve said repeatedly over the last few weeks, if the Fed doesn’t unveil something new, the markets will tank in a big way as the next Fed FOMC meeting is in August. With the US economy deteriorating at a rapid pace again and stocks’ primary support (QE 2) ending, the markets could see some very nasty drops to the downside.

Indeed, worldwide, interbank liquidity is beginning to dry up rapidly (just like in 2007). Europe has seen interbank lending collapse. And now China has found itself in such an interbank liquidity freeze that the central bank is halting the sale of various bills because there simply isn’t enough cash floating around to meet supply.

Combine this with the ongoing political struggles in the Middle East, roaring inflation in China, Europe’s ongoing banking collapse, and the US’s own debt problems (we’re raiding pension funds to meet new debt issuance) and you’ve got a recipe for disaster.

Put another way… are we about to experience another major round of deflation?

The US Dollar is definitely hinting that something is afoot. Since bottoming in May 2011, we already established a series of higher lows and higher highs:

We’ve also broken above both the 20-DMA, the 50-DMA and we’ve staged a bullish cross-over (when the first breaks above the second).

Big picture, we could definitely see a sharp US Dollar rally hit as we have a clear bullish falling wedge pattern forming in the US Dollar. The US Dollar has just poked its head out of this pattern, but we’ve yet to get a confirmed breakout.

If we do get a confirmed breakout to the upside, the above pattern predicts a run to at least 80 if not 85. The only thing that could push the US Dollar to these levels would be a full-scale Crisis (the only times the US Dollar has rallied since 2007 was during Crises).

I want to be clear here. The US Dollar is ultimately a doomed currency. But it remains the “flight to safety” trade amongst global currencies (along with the Yen and most of all, Gold). Europe is far worse off than the US. And China’s now seeing a liquidity crisis of its own.

With that in mind, we need to consider that the US Dollar may in fact be predicting another deflationary collapse. Which is why if you haven’t already taken steps to prepare yourself and your portfolio for the coming disaster, you need to do so NOW.

I can show you how…

I’ve recently published three key reports titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio all in all 40+ pages of material devoted to showing individual investors how to prepare these areas of their lives in great detail.

I’m talking about how to prepare for bank holidays, food shortages, stock Crashes, debt defaults, civil unrest and more.

Regarding profiting from a deflationary collapse, I just unveiled six specific trades to subscribers… all of which will pay off HUGE returns as the current stock market collapse accelerates.

So we’re ready for whatever may come. And the worse things get… the more profitable our strategy will be.

If you’ve yet to take these steps yourself, it’s not too late… in fact, you’ve still got time to get your financial “house” in order to not only survive what’s coming… but potentially even make serious money from it.

All you need to do is take out a “trial” subscription to my Private Wealth Advisory newsletter. You’ll immediately be given access to all of the reports I detail above… and you’ll also be on my private client list to receive my bi-weekly investment reports as well as real-time trade updates on when to buy and sell various investments.

And if you should decide that Private Wealth Advisory is not for you, you can ask for a full refund during the first 30 days and I’ll return every cent of your subscription cost.

The reports you’ve downloaded during your “trial” period are yours to keep, even if you choose to cancel.

To get started with you Private Wealth Advisory subscription today, download

the Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports and start taking action to prepare for what’s coming…

Click Here Now!

Good Investing!

Graham Summers

Editor In Chief

Gains Pains & Capital

Disclaimer: The information contained on this website is for marketing purposes only. Nothing contained in this website is intended to be, nor shall it be construed as, investment advice by Phoenix Capital Research or any of its affiliates, nor is it to be relied upon in making any investment or other decision. Neither the information nor any opinion expressed on this website constitutes and offer to buy or sell any security or instrument or participate in any particular trading strategy. The information in the newsletter is not a complete description of the securities, markets or developments discussed. Information and opinions regarding individual securities do not mean that a security is recommended or suitable for a particular investor. Prior to making any investment decision, you are advised to consult with your broker, investment advisor or other appropriate tax or financial professional to determine the suitability of any investment. 

Opinions and estimates expressed on this website constitute Phoenix Capital Research's judgment as of the date appearing on the opinion or estimate and are subject to change without notice. This information may not reflect events occurring after the date or time of publication. Phoenix Capital Research is not obligated to continue to offer information or opinions regarding any security, instrument or service. 

Information has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. Phoenix Capital Research and its officers, directors, employees, agents and/or affiliates may have executed, or may in the future execute, transactions in any of the securities or derivatives of any securities discussed on this email. 

Past performance is not necessarily a guide to future performance and is no guarantee of future results. Securities products are not FDIC insured, are not guaranteed by any bank and involve investment risk, including possible loss of entire value. Phoenix Capital Research, OmniSans Publishing LLC and Graham Summers shall not be responsible or have any liability for investment decisions based upon, or the results obtained from, the information provided. 

Phoenix Capital Research is not responsible for the content of other websites or emails to which this one may be linked and reserves the right to remove such links. OmniSans Publishing LLC and the Phoenix Capital Research Logo are registered trademarks of Phoenix Capital Research. Phoenix Capital Management, Inc.
What Happens When the Everything Bubble Bursts?
  • By trying to corner the bond market (risk-free rate)
  • the Fed has created a bubble in everything
  • Reserve your copy of our Executive Summary
  • To prepare for what's coming down the pike!