Dollar index breaks support

While many parts of Euroland are going cold turkey on the debt Ponzi crash, the US is still sticking to its QE guns and pumping out $85 billion of new cash each month in order to pay the bills of excessive government.  If you look around Euroland, some parts of it are experiencing economic times that are actually worse than the Great Depression.  Think that's an overstatement??  Have a look at Spain and Greece.  France is rolling over big time as well and it's about to get fugly there.  Finally, Germany will roll over with the rest of the sinking Euro ship.  Things are worse there than in the US simply because they are not up as high in the Ponzi Pyramid as the US is.  After all, marginal players get hit the first and the worst.  But by suffering their depression, they are actually working through their debt.  They are consuming less now to pay for past over-consumption.  They are reverting to the mean.  The US, on the other hand, continues to try to print its way out of debt and the world is taking notice. 

I try not to place too much focus on the evaluation of the US dollar index to the economy in general because it is a measure of one fraudulent currency (the USD) against other fraudulent foreign fiat currencies.  It's literally like comparing bull $hit to horse $hit to see which is the least offensive.  Why anyone would ever use bull$hit or horse$hit as a way to value either gold or silver is beyond me.  Of course, there is a sucker born every day and if you don't know who's getting screwed in a Vegas deal then it's you.   Nevertheless, some people do use the US dollar index as a measure of the dollar price of gold and silver so when the USDX looks weak then oftentimes it suggests strength in the metals.

Have a look at the UUP ETF which is a proxy for the USDX chart.  After bouncing along the support line several times and then kissing the parallel top resistance line, the chart went down to kiss the support line one last time (wave 1 down), bounced up off of it (wave 2 up) and then smashed down through it with a gap and with gusto (clear 3rd wave activity):

This suggests to me that the world is catching on that Bernanke is so full of bull$hit about his ability to taper and they are waking to the fact that bull$hit is flowing out all of his orifices.  He can't taper as it will crash the last economy still standing in the global debt Ponzi.  Of course, eventually the inability to taper will cause worse problems in terms of inflation but what does Bernanke care about that?  He's already got his golden parachute.  He's a elitist bastard that sold the US down the river in the false name of saving us.  Like Bush's famous statement about having to destroy the free markets in order to save them, Bernanke has screwed the US economy in the name of saving it.  And Obama will probably give him a medal for ConManShip.  We've now told the world in very clear terms, "We have to increase our debt in order to pay our bills".  That is the nature of a debt Ponzi. 

Conspiracy theorists (when will fools stop calling us that and begin to use a more correct description such as "enlightened visionaries"??) have said for a long long time that Bernanke was lying from day one about having a workable exit strategy from QE.  But with his recent scramble for the door while handing the baton off to a disposable fed chief by the name of Janet Yellen, Bernanke is proving that he actually DID have an exit plan just like he said from the start.  But its only an exit plan for himself.  The rest of us were sold down the river and no exit plan is possible.  Only Bernanke gets to jump out of the plane with a golden parachute.  The rest of us are in for a rough landing.

I hope, when all of this fraudulent crap finally does collapse, that the idiots who believed in and followed the likes of con man Ben Bernanke just finally shut the Hell up and get their Keynesian a$$es out of the way of us good, honest, Austrian leaning folks who were never fooled by all of their sophistry and fancy talk.  IMO everyone associated with this massive debt Ponzi should be hunted down and held criminally liable in a court of law for the massive negative societal repercussions that it will eventually cause when it collapses.  They are tyrants and traitors all and they deserve the fate of tyrants and traitors.  Finally, anyone who thinks that the collapse is the fault of capitalism needs to go back to economics school.  Crony capitalism which is supported by fraudulent currency is guaranteed to fail at some point, just like any other con.  But real capitalism is not a con.  Real capitalism can only occur in an economy that uses honest money of some sort.

The US has not had honest money since 1971 when Nixon delinked the USD from gold.  "Money" that is unbacked by anything except trust and confidence, faith and confidence or whatever you want to call it is not money.  It is currency.  Real money has to have some sort of backing that ensures it cannot be conjured up from thin air by special people on a whim.  The discipline of gold and silver backing of currency is what makes it real money.  Again, without real money you cannot have real capitalism.  Also, fractional reserve banking is a fraud.  You really cannot have true capitalism as long as fractional reserve banking is allowed.  These are the things we need to be sure to fix after the collapse.