Drop DOW to save Dollar?

Here’s today’s USDX chart: img16.imageshack.us I think the FOMC/Fed used the equity markets to prop up the dollar today. The timing of the sudden dollar drop, then rise in conjunction with the equities drop seems to support this theory. Also, the news out there is full of doo-doo! A stock market crash is imminent in real number terms but in nominal terms, I’d expect the equity markets to keep increasing.
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14 thoughts on “Drop DOW to save Dollar?

  1. His politics aside, this is a must watch –

    Rep. Alan Grayson: “Has the Federal Reserve Ever Tried to Manipulate the Stock Market?” from HR 1207 hearing on 9/25/2009

    watch?v=mXmNpdYpfnk

  2. No, no one could determine an expectation with all the excess liquidity in the system. Look at the last few months, I’d say there is a very interesting correlation between the USDX and the DOW. With so much inflation in the equity markets, I think it has no choice but to effect the dollar. Just my two cents….

  3. interesting how u relate dollar to dow.
    is there a historical relationship ?
    or can u determine a expectation.
    @ 77 dow = ?
    @ 79 dow = ?
    @ 75 dow up or down ?

    will be watching for your presentation.

  4. Very funny ” I will take that 1000 in gold”. had me laughing for like 10 minutes. Quick question: do you recommend buying real physical gold and silver or is the ETF’s a safe haven? Also keep the videos coming.

  5. FHA is housing insurance. They do not make loans. What this sounds like to me, is instead of Goldman Sachs and AIG scratching each others back, it’s going to be the government scratching the government’s back. Sounds to me like they’re reinflatting the CDOs and they will use FHA as the insurer this time instead of AIG. It’s the same scam. Just different players.

  6. I’m fully on board with your analysis (and am an inflationist) but surely there must be real chance (hard to put a % on it) that we get a repeat of last years action in the coming months? – US stock markets crash big time, dollar goes way back up high 80s. i.e. the Fed can’t get the inflation it wants and US ends up like Japan. I think this unlikely but who knows?

    I suppose the point is that doesn’t an investor need to have a large chunk of cash on the side in case they get whacked again?

  7. Interesting how the precious metals got hit today like that, all at the same time, then subsequently pumped. That liquidity had to come from somewhere. The FOMC is playing a balancing game. Squeeze the balloon here, watch the balloon expand over there. This game is going to end soon or the balloon is just going to pop because the squeezed to hard!

  8. I do have a link to the chart in the Info section, but yes I know what you mean. I was just in a hurry this time and wanted to get the info out.

  9. I agree, I think they want and need to devalue the dollar because of the crazy national debt. However, inflation has to go somewhere. During the 1930’s, the markets bounced after the 1929 crash, but this time we have MUCH more inflation. In other words, we have more “coil”. Either way, the real value of the equities market will decline.

    I think they’ve been using the IMF gold selling as a means to prop the dollar. Just my very humble opinion.

  10. Worst of all scenarios the dollar and stock market go down together. They want the dollar to devalue, but they want it to go down orderly, Its to close to major support of 71-72, they are sweating because selling has been constant.

  11. Just google dollar index today and it will be the first link. its quotesdotinodotcom. Has a beautiful chart of the dip and rise.

    Im no guru, but after 2pm I watched the price of silver plummet from $17.15 down to $16.88 within an hour or so. Then I looked at the dollar index to see it at the years lowest drop around 75.8 only to rocket to 76.45. How is that possible without some type of fraud?

    My opinion, it seems as though they are protecting the dollar due to the UN G-20 meeting thurs

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