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September 10, 2020 | Watch the Dollar Call the Fed’s Bluff

Rick Ackerman

Rick Ackerman is the editor of Rick’s Picks, an online service geared to traders of stocks, options, index futures and commodities. His detailed trading strategies have appeared since the early 1990s in Black Box Forecasts, a newsletter he founded that originally was geared to professional option traders. Barron’s once labeled him an “intrepid trader” in a headline that alluded to his key role in solving a notorious pill-tampering case. He received a $200,000 reward when a conviction resulted, and the story was retold on TV’s FBI: The Untold Story. His professional background includes 12 years as a market maker in the pits of the Pacific Coast Exchange, three as an investigator with renowned San Francisco private eye Hal Lipset, seven as a reporter and newspaper editor, three as a columnist for the Sunday San Francisco Examiner, and two decades as a contributor to publications ranging from Barron’s to The Antiquarian Bookman to Fleet Street Letter and Utne Reader.

It’s obvious that the U.S. dollar is the only thing occupying investors’ symian brains at the moment, since stocks are moving in lock-step against it. Even gold and silver have been kow-towing, reacting to every dollar zig with a precisely measured zag. That’s why I recently shifted my technical focus from AAPL to the Dollar Index (DXY), starting with a September 1 low in the latter that missed a longstanding Rick’s Picks correction target by just six cents.

If the dollar continues to rise, virtually every trend in effect since the March 23 low is due to reverse. Debtors around the world will not be able to survive a strengthening dollar, nor will the charlatans at the Fed be able to do much about it. Their 2% inflation target is such a lame bluff that Powell, if he were honest, would admit the banksters are praying for it, not managing it.  A rising dollar is about to unmask all of them as fakes. It may also prompt pundits, eggheads and the news media to acknowledge that Fed ‘policy’ since the S&L debacle 30 years ago has been just hocus-pocus the banksters have made up as they’ve gone along. The very idea that America can return to prosperity by having the Fed ‘buy’ trillions of dollar worth of government debt is patently absurd. It is a free-lunch scheme hatched by crackpots that is believed only by economic imbeciles.

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September 10th, 2020

Posted In: Rick's Picks

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