Published with permission from Business Insider:
Legendary newsletter writer Richard Russell has been calling for the collapse of the US economy for awhile.
Based on recent dollar movements he says that crash is going to come now (via King World News). First, the dollar has lost all stability:
Today there’s no definition for the dollar. So how do we price the dollar? At one time, the dollar was priced in terms of the time-honored standards – gold and silver. But today we must price the dollar against other fiat currencies: ‘a dollar is worth so much against the yuan, or so much against the pound sterling, or against the euro and so forth’.
Second the dollar is moving in a bearish pattern:
To get back to the chart, we see that the Dollar Index is now trading below its blue 50-day moving average. The 50-day, in turn, is below the red 200-day MA. Thus, the Dollar is in the classic bearish configuration as long as it trades below its 50-day MA.
Note also that the Dollar has now broken below three preceding lows, a bearish situation.
Furthermore, MACD has turned bearish, pushing the blue histograms into negative territory (bottom of the chart).
Russell compares the dollar to the foundation of a house. When it crumbles (soon) the whole thing will come crashing down. To prepare for this scenario you should get the hell out of dollars:
The Russell advice — swap your dollars for physical gold or CEF, GLD, or SGOL. In other words, do as China and Russia and many other nation are now doing — get out of your dollar assets.
But remember, Russell has been making these predictions for a while.
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