U.S. Dollar Is `One Step Nearer' to Crisis as Debt Level Climbs, Yu Says

The old idiom of the writing's is on the wall suggests doom or misfortune. The recent breakdown of yet another head and shoulders pattern provide further support that the writing's is on the wall for the U.S. dollar. The minimum measured move forecasts a break of the 2009 lows. In time the public will come to recognize the severity of these technical break downs through real world consequences that cannot be ignored.

U.S. Dollar Index ETF (UUP):

The U.S. dollar is “one step nearer” to a crisis as debt levels in the world’s largest economy increase, said Yu Yongding, a former adviser to China’s central bank.

Any appreciation of the dollar is “really temporary” and a devaluation of the currency is inevitable as U.S. debt rises, Yu said in a speech in Singapore today.

Source: bloomberg.com