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Tuesday, June 3, 2025

US Dollar Red Line


Below is a US Dollar chart from 2008 to today.  The red uptrend line, when broken, will be an indicator to the world President Trump is successfully 'revaluing' the USD.  Once broken we may see the market finally pull back, and with risk off push the dollar back up.

However, at some point, we could see the USD depreciation pick up, but I suspect that will be next year. 

If or when the lowest green line is penetrated, it will be panic time for USA, for all time lows will be achieved.  I would expect imports to materially rise in price.

See next chart about the stock market.


The US stock market relative to the world hit an all time high on Jan 21s.  Although the S&P 500 is only 2.5% below all time highs inside the USA, outside the USA the market is a full 10% off all time highs.

The green line represents the SPY adjusted for USD value.  This is how the USD will be devalued, in a manner of which people inside the USA think they haven't lost savings.  When infact, USD devaluation is removing their asset values.

For example, if the USD drops 20% more from all time highs, even if the SPY is at todays level, the US assets would be a full 30% from all time highs.





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