The dollar index is pretty low -- 82.4 right now. That might be because Iran made it illegal to use US Dollars -- including to pay for Iranian oil -- on March 21. North Korea followed suit!

Taken from a Gold discussion forum:


Looks like 82.4 to 82.5 is a critical area...so tomorrow do we get a PPT bounce up to the 83s? Or do we stay below 83?? If the $ fall continues, we might be entering a danger zone of sub 82 and possbily sub 81/80. On the one hand, it is getting interesting...on the other hand, if "S" is really hitting the fan, I don't think I am ready. Where is the PPT when we need them??????

Then again, tomorrow the dollar may just make a sudden burst for the hills into safe territory, in which case I'll have more time to procrastinate getting ready for ugly stuff I think is coming down the line.

Although there are parts of the economy that are strong, we really are in a precarious situation that seems to be getting worse.

Let's see, inflation is continuing (it takes a long long time for high oil prices and excessive paper to ripple through the economy), Alan is talking the "R" word, the economy is slowing, the stock market is jittery, the subprime is imploding, hedge funds are bailing out subprimes, subprime and other home loan based derivatives run far and deep, Alt A (liar loans) may be catching the flu, the "housing ajustments" are ongoing, China will be "investing" OUT of its dollar reserves, Iran is accepting non-dollar payments for oil, the Straits of Hormuz are next to the pending Iran resolution, oil producers are diversifying away from dollars, Canterel is headed to empty...ugh...too much stuff to list...but the terms "casade" and "systemic risk" suddenly come to mind.

If we have entered the rabbit hole, the problems will accelerate from this point downward as we go deeper and deeper. And even the Fed and PPT and who knows who else may not be able to deploy a parachute large enough to keep us from breaking our ankles on landing, or worse. I would hardly call broken ankles a "soft landing," but that's what Spin Doctors are for.

On the bright side, I've always wanted to make a million dollars a year....who knows, I may actually see it happen. Of course, a loaf of bread may cost $1,000, but who cares...at least I'll be making a MILLION!