In Friday’s essay we discussed the frightening chart of the US dollar index. In particular we focused on the manner in which the Dollar has broken critical support (76) and is on its way to its all time low of 72. Below that… and we’re in uncharted territory. Long-time readers know that I’m no fan of Ben Bernanke. But Bailout Ben is in no way unique in his thinking (though he has managed to spend more money than WWI, WWII, and the New Deal combined). Indeed, virtually every central bank in the world has engaged in a massive printing orgy. Australia, Canada, China, Germany, Korea, Russia, even South Africa and Turkey have all engaged in Stimulus plans in one form or another. They’ve also all done Gold a huge favor by devaluing their currencies via massive money printing. This is most obvious in the US, where Gold has broken $1,000 an ounce (a crucial line of resistance) and hit an all-time nominal high relative to the US dollar (note: I am using the Gold etf (GLD) as a proxy for gold in the charts).

Source