Today the dollar broke through 81.40. This is a major development as it signals that the current daily cycle topped in only 2 days, thus confirming that the intermediate cycle has also topped.
I've been warning for months and months that this was coming. Anyone with a modicum of common sense knew that printing trillions of dollars was going to eventually have consequences. There is no escaping the inevitable; if you aggressively debase your currency eventually you are going to have a currency crisis. The first one has now begun.
Over the next 3-4 months the dollar is going to test the lower trend line of the megaphone topping pattern and ultimately break through. When it does we are going to witness a spectacular collapse in the dollar, probably testing the 2011 bottom by the next intermediate cycle low due in November.
IF he is right and IF China continues to transition into a monster of commerce (exporter and consumer), we will also hear inflation start to pick up steam.
PMs should do extremely well in that environment.
IMO and probably every one else's opinion.
BUT, there's gonna be a lot of pain running parallel with this.