Approximately three months ago, the dollar began a massive rise in relation to other global currencies, with its value gaining more than 675 bps on the charts.  Closing out on Friday, Oct. 3 around 86.64, this is the highest the dollar has been since the middle of 2010 when the Federal Reserve began its first round of Quantitative Easing, and Europe was enmeshed in a liquidity crisis.
Dollar’s sudden strength occurring as a sign the world is rejecting reserve currency

But while economists and government officials can go on the talking head programs and tout the recovery of the economy as the primary reason for the dollar’s meteoric rise, the real truth that is being hidden is that the dollar’s strength is tied primarily to the world rejecting the reserve currency, and shipping back dollars to the U.S. at an ever increasing rate.
Following this information, in rapid succession, was word that the BDI (Baltic Dry Index), the indicator of global trade, had fallen again—to all time lows. Immediately, countless talking heads began to site this as evidence of a global slowdown. In reality, it is the dollar being used less for trade, or put another way, excluded from trade! There are three clear indications of this fact. The first is that the DXY (US Dollar Index Spot) is on a lunar trajectory. The second is that the BDI is on a tailspin dive. Lastly, the WTI and BRENT CRUDE are diverging even further.
What does that mean? The Guerrilla will reiterate, “The dollar is being used less today for trade.” The excess dollars are bought up by the FED and its JP Morgan apparatus, EuroClear. EuroClear then sells the worthless dollars to Euro Hedge Fund. The Euro Hedge Fund, in turn, splurges on dollars. Viola! Demand for the Dollar is magically created and the DXY shoots to the moon. –
Dollar Chart
What this means of course in layman’s terms is that the countries are dumping their dollar reserves because they are finding new alternatives outside the reserve currency to buy oil and commodities, and the U.S. central bank is having to use European clearing houses to buy back Treasuries so that they do not effect the bond markets, and are hidden away from the general economy.  Should these hundreds of billions of dollars actually reach the surface, then it would instantly create a bond crisis and shoot price inflation in America to escalating heights.
The dollar’s days are numbered despite this sudden rise in strength for the U.S. currency, and the propaganda coming from the White House and talking heads of recovery is simply to mask the continued failures of the Fed in solving their monetary issues.  And as the world continues to dump dollars and reject the global reserve currency in favor of alternatives that will create neither inflation or deflation in their economies, we will continue to see the U.S. dig themselves into greater debt, and use military conflict as the last resort to stave off the end of dollar hegemony.

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