Uncle Buck is Not Impressed

With Jerome Powell doing this…

jerome dove eye powell

And with Trump pondering another cool $Trillion (on infrastructure spending) on top of the off the charts monetary and fiscal stimulus that can only happen in a Wonderland of infinite possibilities, still the US dollar does not die. And you can bet they want it to at least play dead through the election. The usual “dollar collapse” experts have also weighed into on a bearish buck.

Yet still it clings to support. This week sees new policy Howitzers on top of last week’s policy bombs. Yet still the March low holds. That is a negative marker, technically, because it was a lower low to the June 2019 low. But as yet Unc is saying “Is that all ya got, ya pussies? Please sir, may I have another?!”

us dollar index

What could be firming the USD, other than the simple notion that the reserve currency is going to die hard because of that status? Well, it could be a divergence laying in wait for the asset market games to terminate. I am just guessing here, not short anything and enjoying the 2020 market immensely. But the most logical explanation is IMO that the buck is waiting to receive major liquidity bids.

So how’s that Gold/Silver ratio looking?

gold silver ratio

The other Horseman looks just fine. I don’t want to scare anyone (or myself) away from a good party before it’s time, but I also don’t want to be a punch drunk bull dink. I want to have awareness. In a real liquidity crisis, these two ride together.

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