Janet Yellen And The Coming USD Collapse
Phoenix Capital Research | Jul 24, 2017 10:24AM ET
Janet Yellen has confirmed that the US dollar is going to collapse.
I don’t mean a systemic, going-to-zero collapse. I mean that the USD is going to drop hard in the coming 18-plus months.
How hard?
I believe we’ll see the dollar in the 80s sometime in 2018. That’s a full 11% lower from where USD is today. Put simply, the entire move in the greenback that was driven by the Fed ending QE in 2014 will be unwound.
How do we know this?
Yellen’s testimony to Congress earlier this month was a clear signal.
h3 Context/h3For months, now, numerous Fed officials have been publicly stating that the Fed was embarking on a significant tightening schedule.
This has been one of the most coordinated and clear Fed PR campaigns in recent history with numerous Fed officials calling for 3-4 rate hikes in 2017 as well as shrinking the Fed's balance sheet.
On July 11 and 12, Fed Chair Yellen testified in front of Congress that the Fed is just about done with tightening.
Moreover, she stated that the Fed WOULDN’T use its balance-sheet normalization as a monetary policy (indicating that it won’t use it to drain liquidity from the system).
The USD, which was already trending downward in spite of the Fed’s previous hawkishness, promptly collapsed and gold erupted higher.
Again, this is a clear signal. Yellen couldn’t stomach even a few months of hawkishness. She knows the US debt markets need the USD to be weak.
Which means it’s time to move into inflation plays.
If you’re not taking steps to actively prepare your portfolio, do so now.
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