The dollar has been on an upward tear since July of last year. It’s value, as measure on the US Dollar Index (USDX) rose 25% in less than 8 months. (See my previous article USDX Deflation.)
On Wednesday, March 18th, the fiat dollar’s perceived value fell nearly 2 points. On Thursday, the dollar popped back up by most of 2 points. Today (Friday), as I write, the dollar is down almost 1 point. This volatility is at least unusual and may be unprecedented. This USDX volatility almost certainly signals a significant change in the direction of the USDX “trend”. That trend has been rocketing upward for the past 8 months. Odds are, that trend is about to reverse.
If it does, we can expect the prices of items like crude oil and gold to begin to rise.
The following video–especially its first 3 minutes or so–comments on this week’s “flash crash”.