DXY/USDX DOOR: The Silent Bleeding That Will Destroy Your Savings

[Igor Pereira]

No emergency meetings. No press conference at the Treasury. No panic at CNN. Just a deafening silence.

However, the US Dollar Index (DXY) has just recorded a fall above 10% in a single year. The chart below does not lie: DXY has fallen to the level of 97.47, a devaluation of -10.15% who is going unnoticed by the majority.

Global reserve coins don't move at that speed unless something fundamental is breaking under the surface.

Why is this happening? The Dollar is the backbone of everything: savings, wages, bonds and global trade. When he bleeds silently that way, it's never random.

A drop of this magnitude in DXY signals an unsaid but obvious change of policy: The government chose inflation over stability.

• The US debt is priceless at current interest levels.

• The costs of rolling the debt are exploding.

• The "printer" (exchange devaluation) became the only remaining exhaust valve.

Who Pays the Bill?

Here's the part most people lose: A weaker dollar doesn't hurt Wall Street first. He attacks directly:

1. Who holds cash (money in the bank).

2. Employees.

3. Anyone pays in cash.

While your money buys less and less, financial assets are "reprepared" up. Historically, it is at this stage that we see Real assets (Gold, Silver, Real Estate) start running for real. The shares seem strong "on paper" (because the denominator, the Dollar, is worth less), but the actual purchasing power collapses.

What's Next?

Don't expect a day-to-day crash that comes out in the newspaper headline. This is a slow bleeding that ends in panic. People only realize what happened when they go to the supermarket or try to buy a house and realize that their money has "evaporated", even if it's stopped in the account.

ExpertFX View: I was the only one calling the exact top of the market in October, and my job is to keep them ahead of the curve. With the Dollar breaking the support of 100 and falling to 97. Protect yourself on assets the government cannot print.

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Igor Pereira Your ExpertFX School Financial Market Analyst