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Global investors are dumping dollars like there’s no tomorrow.
After plunging for nearly a year, the greenback is down a staggering 15.9% since last June alone.
This week, it hit a low of 72.834, a meager 2.136 points from its lowest level of all time. Meanwhile …
* The dollar is sinking fast against major world commodities like oil, which has surged beyond $113 per barrel in the U.S. and $125 in Europe.
* The U.S. dollar is right at, or near, new all-time lows vis-à-vis silver, as the white metal trades close to $50 per ounce — levels it hasn’t seen since the Hunt brothers manipulated the market over 30 years ago, and …
* The U.S. dollar is ALREADY at all-time lows when measured against gold, which has just sailed past the $1,550 per ounce and is making a beeline for $1,600.
But this is only a mild dress rehearsal for
what’s possible if Washington stays
on its current wayward path.
It’s the disastrous decline of the dollar that’s largely driving every one of these trends. And it’s the Fed’s money printing — plus Washington’s complacency about its credit worthiness — that’s driving the dollar into the gutter.
As more central bankers and foreign investors get fed up with losing mountains of wealth in the dollar’s decline …
And as the world’s financial authorities move closer to replacing the U.S. dollar as the world’s reserve currency …
The big danger ahead is that we could see a bust in the biggest bubble of all — the U.S. government bond market!
How soon? No one can say for sure. But judging from the response on my personal blog last week, many of our readers expect it will happen THIS YEAR!
This is precisely why I decided to issue objective, conflict-of-interest-free country ratings and rate the U.S. government — to help investors see the real risks and dangers beyond the candy-coated ratings issued by S&P, Moody’s and Fitch.
The response has been quite unusual: Dow Jones. MarketWatch. CNN/Fortune. CNBC. Newsmax. Yahoo! And many more.
Plus, the feedback on my personal blog has been amazing: Hundreds of readers have posted their comments, suggestions and questions — and we’re here to help in any way we can.
We’re standing by to answer any questions you have about our new country ratings … what they mean to you and your family … and what you should be doing now to insulate your wealth.
Just click this link to jump over to my personal blog to share your suggestions, questions and to answer our question of the day:
What steps do you think investors should be taking NOW
to insulate their wealth against the likelihood
of a collapse in U.S. Treasury prices?
Good luck and God bless!
Martin
{ 8 comments }
Interesting article but I am sure the readers want to know who is at the correct side? Bryan’s dollar bullish position or Martin dollar bearish sentiment?
We should avoid making financial and economic models the center of our thinking process. They leave out too much from the human equation including religion, politics and war.
For example, the United States became a world leader by default after World War II and economic policy had little to do with it.
Economic conditions are usually a symptom of deeper problems such as war or religious fanaticism. America will never solve its financial problems unless it has a “spiritual” awakening and I don’t mean a return to Christ.
We need to confront out history and then reinvent ourselves following our best impulses and not the impulses of greed, power and avarice, all of which lead to war, torture and the death of innocent people.
Of course James, America became the economic superpower it became because of 3 very good reasons:
1, The U.S. had a “Can do” attitude to life – People were self-reliant, and didn’t expect the state to solve all their problems (or bail them out if life got difficult)
2, It didn’t suffer a loss of productive capability due to arial bombardment – London, Coventry, Birmingham, Liverpool, Belfast and many other major connurbations were incessantly bombed lowering productive output. Our history with our empire was one of mutual benefit, even if we didn’t always get it right.
and
finally
3, It’s enormous landmass, meant it had easy access to raw materials on its own territory including cheap oil.
These were the reasons coupled with that nations patriotism that made it the world’s dominant economy.
Britain, and other empire nations got their success, by trade.
The downside of US hegemony is that they have a tendency to be insular, and the world has changed.
Alliances, and taking the moral high ground, delivering on your promises, and commitment to free and open markets, those will be the hallmarks of a future dominant player.
bueno. ARgentines defaulted serveral times.
see nations: defaults. Plus they suffered from inflation in prices of food etc.
see worst inf. in history: 1945 bud pest Hu 21 zeroes
Nations havce the govts. they deserve Incapable of voting the incompetents out of offidce and when a patriotic honest candidate . he is rejected
Incapable of listening to reason means irrational. get it
So dollar is down 16% in one year and gold is up from 1240 to 1550 in the same period, or about 25%. Silver meanwhile is up from $18 last year to $50 now? That is either a catch-up situation or simply mania buying. When you consider that gold has gone from $300 to $1550 since 2004, you can only conclude that either the dollar is expected to fall by more than 80% (300/1500= .2, or 20%) or there is an added element of irrationality in chasing a metal with little commercial value.
I suspect that the heavy buying of silver is a pursuit of the “next big thing” based on gold’s price rise. Speculators are mostly trying to get silver before it rises to the equivalent % that gold has gone to.
At least with silver there are more industrial applications. It is not all jewelry.
Yet, I believe most of the silver price is speculation, as the gold price that it is based on is also highly speculative and fear-based.
Abbie,
The skinny on the street is that the bigplayers in the COMEX markets took silver down, so that they could stop a major default by the COMEX (which raised thresholds to flush out smaller players from using leverage)
Now we’ll see them moving to the buy side, and I bet the next major pull-back won’t be until silver hits $150+, and we’ll get QE3 before then. Deflation is NOT an option for the U.S. government.
2-7years we’ll have $200+ silver, and $3,000+ gold
W.