USD: noise and reality

Lotta noise on dollar's fate recently may hide the real story in the process of making. The dollar is the main  funding currency in the world. Trillions of liabilities are dollar denominated and should be payed back in dollars as well. Under the light of the private credit contraction, I think it's the time to take seriously the long ago  discussed theory of the Synthetic Short Dollar. I remember, when  gold bugs were criticizing the theory as something impossible due to the fact that a genuine deflation in US is impossible. And, really, the Fed and US government did all they could to stop the deflation. Did they succeed? The time will show. But we must take in account that they had a good ally - China. Being pegged to USD, the RMB credit expansion has amplified the American reflationary attempt. Moreover, I would even think that it's the Chinese who have reflated  the World economy and only because of the peg we have felt it as a dollar reflation. Since this reflation attempt is clearly slowing in the US and China, one could suppose  that, US and China deflationary forces will strike back with the vengeance and hence the dollar will rise. It's exactly what the USD index chart suggests:

The bottoming process, in my opinion, is clearly underway. Should we break out the blue trend line, a sharp rally will ensue with very certainly higher than 90 as target. Of course, that rally will go along with a massive stocks and low quality debt liquidation.