Trading FX when the DX was over 120 was an Indicator for me to Purchase Physical Gold and Silver.
Debasement and "Traditional" correlations would hold with respect to overall Credit up until 2008, thereafter... the Blow off to the Futures Price then was 1913$.
Gold had begun to lose its "Store of Value" Function well ahead of the Peak in Prices which lasted for one Decade.
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The Dollar remains the Debt Instrument Du Jour for Debts Public and Private.
The Dollar lost a number of years later when Roosevelt decreed owning more than 5 Ounces in any Household was illegal.
Redemption was ordered and Gold was remonetized from $20.70 to $35, a significant devaluation for the Dollar.
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This is no longer possible, neither is the remonetization of GOLD.
To be clear, this is not to suggest Gold will not gain in Price, it indeed will, but its Value will be for Tier 1 International Trade sanctioned by the BIS @ SDR Divisors.
The Public... will face confiscation of the Yellow Metal. It has throughout recorded History. It will again.
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While the statistical relationship between returns on US stock markets and changes in the value of the Dollar has historically ranged between .93 and .97
FX fluctuations indicate a much higher correlation between the volatility of returns on US Equity Prices and the volatility of Dollar exchange Rates.
Historically - a 1% increase in Equity Complex VX correlates to 0.2% increase in the volatility of the Dollar - for Decades.
This is no longer the Case as the Dollar remains the Currency of Senior in a Late-Stage Credit Cycle.
Volatility, however, is Highly Correlated with OVERALL Liquidity.
In 2008 the DX rose from 84 to 97 as the S&P lost 47% of its Price Level.
The FED needs a Strong Dollar - to is a precursor for what they have in store...