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The US dollar is plummeting

James Turk
By James Turk / October 6, 2010

Since observing in my September 22nd commentary that the US Dollar Index is “staring over the edge of the precipice and is ready to plummet”, it has been basically all downhill for the dollar.  The Dollar Index over the past seven trading days has dropped 1.74 points, or 2.18%.  That is approximately an 88% annualized rate of decline.  Clearly, it has fallen over the edge of the cliff.

The US dollar is plummeting.  The following chart of the US Dollar Index indicates that it has further to fall.

I do not expect the green uptrend line in the above chart to hold.  If it doesn’t, the Dollar Index will then fall toward its record lows.  Given that the Dollar Index in within a major downtrend and given that Federal Reserve policies continue to debase the dollar, it would not be surprising to see the record lows in the Dollar Index tested before the end of this year.

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About the author

James Turk

James Turk is founder and chairman of GoldMoney, which provides a convenient and economical way to buy and sell gold, silver and platinum online using the digital gold currency for which he was awarded four US patents. He has specialized in international banking, finance and investments since graduating in 1969 from George Washington University with a B.A. degree in International Economics. He began his business career with The Chase Manhattan Bank (now J.P. Morgan Chase), which included assignments in Thailand, the Philippines and Hong Kong. In 1980 he joined the private investment and trading company of a prominent precious metals trader. He moved to the United Arab Emirates in December 1983 to be appointed Manager of the Commodity Department of the Abu Dhabi Investment Authority, a position he held until resigning in 1987 to begin FGMR.

James Turk has written several monographs on money and banking and is the co-author of The Coming Collapse of the Dollar (Doubleday, 2004), now available in a paperback version entitled The Collapse of the Dollar

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