Look Out Below

"I'm Dave In Denver and I approve this blog post"

Please note:  I am completely politically atheistic with regard to who might have "won" last night's debate, as well as the outcome of the election.  Regardless of who you support, for whatever ridiculous reason, last night's debate was a god damn embarrassment to our country and a complete insult to the intelligence of those who understand the extent to which our country is in a state of collapse.

First off, I want to say that Candy Crowley is grotesquely overweight.  All I could think about during the healthcare part of the scuffle was that my tax dollars under both Obamacare and medicare will be used to subsidize all of the health-related physical ailments Crowley likely suffers and will suffer as a result of her obesity.  She is emblematic of what's wrong with our Government subsidized healthcare system and our society in general.  Put to the test of nature and Darwinian forces - and believe me, that world will eventually descend on our system - she would not survive.

I have to say that I was a bit disappointed in Obama's counter-punch tactics after the thorough beating he took in round 1.  I thought he might of come out ahead at the end, but if this were only a two-round fight, Romney would be the winner by decision.  I was really hoping to see a knock-out performance by either candidate.  Furthermore, I was a bit startled by the lack of grace exhibited by Romney at several points during the whole debate, including his near-dismissal of one of the questions so that he could circle back and get in his final words on the previous topic.  He should have moved on because at that point I'm sure most viewers had gotten up to freshen up their cocktails or check their text messages.  Frankly, Romney's behavior completely belied the type of religion-derived "spirituality" and grace to which he laid claim during the debate.

But on to the more interesting topic of the U.S. dollar.  Coincidentally, I have been invited as a guest on a new a.m. radio program out of Phoenix that discusses wealth preservation this Saturday at 4 p.m. eastern standard time.  The show is sponsored by All-Pro Gold and you can tune-in on this link:  All Pro Gold and click on the link in the middle of the left side of the website.  The topic will be the future of the Petro-Dollar and how it will affect your wealth.

I was looking at a chart of the U.S. dollar a couple days ago and I had not realized that, technically, the U.S. dollar looks vulnerable to a substantial sell-off.  Since the end of April 2011, the dollar staged a 7% move higher, which is a pretty big move in currency terms.  Not coincidentally, the move up in the dollar is directly correlated with the big correction in precious metals.  What surprised me when I glanced at the chart the other day was the trouble the dollar seemed to be having in recovering from the big drop it has taken since it started pricing in the expectation of more QE at the end of July:

(Click on chart to enlarge)

From a technical standpoint, as you can see from my markings on the above chart, the U.S. dollar is forming a "bearish rising wedge."  In fact, today the dollar is down another .5% down to 79.05, which is below the bottom boundary of the "wedge" that I drew yesterday.

The fundamental factors that are likely to drive the dollar a lot lower from here include  1) the inability of the Government to reduce spending, debt accumulation and the massive spending deficit  2) the deteriorating economy - I've addressed the difference between truth and media/political fiction in several recent posts 3) the continued implementation by China of strategic currency alliances with its largest trading partners which use the yuan for trade rather than the dollar 4) QE1, QE2, QE3/to infinity 5) the approaching "Fiscal Cliff" and the Government's inability to implement any kind of fiscal programs which would address the nature of this "cliff."

There are several other fundamental factors which will undermine the value of the U.S. dollar, but the above list is the most obvious and the easiest to understand.  I would like to point out that while both candidates last night boastfully presented their "unique" programs to address 1-5 above, neither of them could explain what they would do specifically to miraculously create 12 million jobs, lower taxes for everyone, increase military spending, improve Government entitlement programs and reduce both the Government debt load and the spending deficit.  When you look at this list of promises with no actual plan of action to deliver on those promises, you can understand why the U.S. dollar is in danger of taking a precipitous drop lower soon.