Charts are a very important for investing in cryptos, precious metals, the stock market, or any other investment.
While everyone can read a chart, some charts are hard to understand or even hard to believe......
There are tons of catchy phrases used as well. The trend is your friend, buy the dip, short squeeze, pump and dump, dry powder, and many more.
If you follow my posts, you know that I use charts often to show the current prices of many different things.
This chart is a year to date chart of the US Dollar Index. Some of you are probably saying “Who cares about that”. While this chart may not directly correlate to you with investing. Let me explain how important this number is.
This number is very important in many ways. It is the dollar value relative to the following currencies: the Euro, the Japanese Yen, Pound sterling, Canadian dollar, Swedish Krona, and the Swiss franc.
Back in the day, people used to plan there international travel by this number. If the US dollar index was over 100, which was fairly common over the past several decades. People saw this as a good time to travel abroad. Our US dollar had more value and purchased more globally when exchanged.
It’s very relevant, let me explain. The US just approved a 1.9 trillion stimulus package. Bringing the US debt to over 28 trillion dollars. Just so you have a visual of what 28 trillion looks like written $28,000,000,000,000.
In just under one calendar years time the US government has put the US tax payers in over 5 trillion dollars of debt with the pandemic relief stimulus checks.
There is no longer a gold standard, so there is absolutely nothing backing this fiat money at all. Yet is you go back and look at the US dollar index chart above, it keeps going up.
The current US dollar index number is 92.95. While this is not an extremely high number. Considering that over five trillion dollars were printed to stimulate the country with no plan on how to ever repay it.
While I’m not a believer of a SHTF scenario. I do believe the current fiat system will completely collapse in the short term.
