For the first time in nine years, the United States is ready to hike interest rates. Meanwhile, major central banks around the world are still engaging in enormous quantitative easing programs to jump-start their economies.
Japan has dipped back into its fourth recession in five years despite the most massive quantitative easing experiment the world has ever seen.
Slow economic growth and low inflation has the European Central Bank considering another dose of quantitative easing.
China’s central bank may be on hold after its two-day devaluation in August wreaked havoc on global markets. The PBOC doesn’t want to risk losing its bid to have the yuan included in the IMF currency basket.
This growing divergence in central bank policy around the world has created a great imbalance in the global economic order, which establishes the very real potential for a rising dollar to trigger the next global financial crisis.
The Dollar May Be Entering a Mega Bull Market
The divergence in economic growth and central bank policies has caused the dollar to break out in a big way. The US Dollar Index (DXY) broke out of a 30-year downtrend that began with the Plaza Accord way back in September 1985.

There may be a new mega bull market forming in the US Dollar.