Hello fellow rebel capitalists hope you're well so we've got big news in the United States dollar.

It's been skyrocketing over the last couple days and we've been following this very closely on this channel.

Most of you know why because the value of the dollar relative to other

currencies is extremely important for the global economy.

It's not just the dollar-denominated debt, but it's also how much of this foreign currency cash flow, let's say they have to use in order to buy things like commodities such as oil so let's use

Japan as a perfect example so Japan has to import most of its oil so if the value of the dollar

keeps going up and up and up even if the price of oil doesn't go up, they need more yen in order to buy that same barrel of oil.

And then if the price of oil goes up as well, then it's just a double whammy. And it really creates for, what's interesting is it creates a dynamic where you could see higher rates of inflation, but also it creates a dynamic where you see global

economic output decrease, which would be deflationary.

So like we said on this channel all the time, you can't just be in the inflation camp or the

deflation camp you have to understand that these cross currents are at play constantly

but let's get right into a chart of the DXY and you can see exactly what I'm talking about.

And what we've been monitoring very closely on this channel are these resistance levels.

Ever since I hung out with Hugh Henry Brent Johnson Jeff Snyder and some

other hedge fund managers in St Bartz I realize that although I'm no technical analyst I understand that these

resistance levels really mean a lot to the people that are out there trading and

therefore it's stuff that we have to pay attention to,

especially as it pertains to the dollar.

So this is a five day chart,

and you can see this just massive move in the dollar.

And what happened is it broke through that resistance level at around 105.6.

That's something that we've been following on this channel very very closely because the next resistance level is maybe 112-113 next one after

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