4 Signs The U.S. Dollar Peaked In January Dollar Time Running Out
Human nature makes most people believe that unsustainable situations can last forever. One of those has been the meteoric rise of the US Dollar, especially over the past year. The dollar became the world’s strongest currency again in 2015, towering over oil prices, gold prices and just about every other currency on the planet.
However, Simon Black at SovereignMan.com has seen four signs that the dollar may have peaked earlier this year:
“… it appears that this dollar bubble may have start to burst, or at least peaked in January. I’ve noticed four clear signs that indicate this.
“[1] Over the last 60 days, most currencies around the world, from the Chilean peso to the Singapore dollar, to the Australian dollar have surged against the US dollar.
“[2] Oil prices are up, and [3] gold is having its best year since 1980.
“[4] Emerging markets, which have been in the dumps for more than a year, have roared back; the MSCI Emerging Market Index is up roughly 15% since January.
“No one has a crystal ball, and it’s certainly possible that there will be another surge back in to the US dollar for a short time.
“But this recent dollar weakness is a clear reminder that what does up must come down.”
We can’t disagree with Simon Black on his assessment. These are clear signs of dollar weakness and that the petro-dollar arrangement that’s been in effect with Arab oil producing nations (and most of the rest of the world) is coming to an end.
Do you think that Mr. Black’s analysis of the US Dollar peaking is accurate?
Poster Comment:
Get ready, the currency wars have just begun.