The Dollar is becoming a casualty of the unbridled printing and borrowing of money without restraint. Commodities are skyrocketing again for the second day in a row.
Daily chart - shows the magnitude of the break-out
Following the new CFTC limits imposed a few weeks ago, the natural consequence is beginning to impact the financial markets. The capital flight has already begun. The Dollar has broken out to the down side. Commodity prices across the board are skyrocketing in the past two days. Oil has exploded nearly $6/barrel, natural gas has risen 21% in 4 days (after a 14-mo. downtrend), gold has blasted through $1000/oz. and even the grains are rising powerfully after being in a downtrend. The longer-term consequences of monetizing the debt are beginning to take shape.
It will get worse. As the capital flight continues, the Dollar will be sent to the slaughterhouse, with commodities prices taking off. But this time, speculators can't be blamed because they have been sharply curtailed and position limits have been imposed. The worst is yet to come too, because the liquidity that funded the production of those commodities has also been curtailed. That means shortages down the road! I hope you have food stored in the garage. You're going to need it!
