Following the USD Index peak at 89 in early June 2010, the Dollar has been on a near relentlessly slide to the recent low of 76.90 which represents a 14% fall in just 4 months. The fall in the Dollar has again brought out the perma Dollar collapse proponents who have periodically come out to reiterate that the U.S. Dollar as measured by the USD index is destined to crash and burn which is set against the perma deflationists who continuously propose that DEFLATION will result in the Dollar rallying to new highs as a consequence of debt deleveraging, which again was most prevalent just as the U.S. Dollar peaked. Therefore this in-depth analysis will seek to conclude towards a probable trend forecast for the USD index into Mid 2011 (9 months forward).

Dollar Collapse…. Again ?

In the face of the relentless dollar collapse mantra due to hyperinflation or the Dollar Soaring due to debt deleveraging deflation mantra for the past 3 years, the actual dollar trend is illustrated by the below graph shows that in actual fact the USD is UNCHANGED from where it was some 3 years ago! Which illustrates that much of that which you will read in the mainstream press and BlogosFear has its basis in propaganda rather than analysis focused on the monetization of probable trends as both perma crash and boom crowds are most vocal just as the USD index turns in the opposite direction, which means that both perma crowds of propagandists would have LOST money had they actually acted on their respective mantra’s.