Awake-in-3D asks --Does the Dollar Index DXY have anything to do with the RV/GCR or is it Hopium?

Danny S. March 11, 2015 at 10:55am   USD:  100.12  BOOM

Awake-in-3D March 11, 2015  Does the Dollar Index DXY have anything to do with the RV/GCR or is it Hopium?

OK. What drives the relative value of the US Dollar on the DXY?  Simple - the world's Central Bank policies (in the US, that's the FED, in Europe, it's the ECB).

Since the US$ Index is a weighted measure of the USD relative to a basket of other major currencies where the Euro and Japanese Yen and British Pound are the next heavyweights. Focus on Quantitative Easing (QE).  

The USA FED stopped its QE regime last year while the ECB and Japan ramped up QE programs.  Consequently, what two major currencies have seen the biggest changes versus the US Dollar? The Euro and the Yen.  Also, the ECB and Japan are moving into negative interest rates on their respective intra-bank policies whereas the FED is about to raise interest rates.

 Since the Yen and the Euro are heavyweights in the currency basket, the weaker they get, the stronger the US Dollar gets.

Is anything "magic" going to happen when the Dollar Index hits 100 and does that have anything to do with the RV/GCR (Did anything happen when the DXY hit 86 last year when that 86 number was supposed to be a "magic RV number"?)?  

I say it's hopium!!! The USD Index (DXY) was at 121 in 2001.  You decide.  Let's all stay grounded.

G T > Awake-in-3D In theory.....It's a Piece of the Puzzle!!  In Reality.....Who Knows!!

Danny S. > Awake-in-3D Agree- Not a trigger but one of many conditions that they are lining up to avoid collapse and maintain control of a very precarious set of economic circumstances that have been created....

Awake-in-3D > Danny S Personally, I watch the current "old economic system" and what's transpiring as a completely futile effort to save an already dead financial regime.  

The current activities of the world's central banks reminds me of Hitler in his Berlin bunker during the final days of the war, telling his armies and citizens to fight to the last man, woman, and child.

We should view the news of today's failing systems as data points for when the new system will kick in.  Hey, it's call a Global Currency RESET for a reason... key word being, well... RESET.

Awake-in-3D > Danny S.Now that, Danny, is very true and NOT Hopium!  LOL

It is not so much that the dollar is rising in value, as it is speculation that the Fed will rasie interest rates driving the values of other currencies, in particular at the moment the Euro down having dropped against both the USD and the Yen, (12.8% and 1.4% respectively.) I am certainly no economic expert, but based on what I have gleaned from my reading this is more a reflection of the weakness of the European economy that the strength of the US. Traders and moving toward the dollar because they are nervous. Many countries like Greece, Italy, and France to name a few are heavilly leveraged, and if the US allows interest rates to creep upward it could be very bad for them.

The plus for the US is that imports will be less expensive. The down sides include exports will cost more abroad, plus potential instability if one or two of those countries are forced to default on bonds/loans.

While it will be interesting to see how this all pans out, (personally I see potential for significant market losses short term, but who knows?) I do not see this triggering or significantly impacting any potential RV. I think Iraq is pretty well isolated in this situation, so I do not see it impacting them at all.