Most Americans are in the dark when it comes to the crash of the US Dollar. I have been talking about it for months now and I fill like Noah when he warned everyone about the coming flood in the Bible. To be able to save yourself and your family you need to put all your money into precious metals and try and gather enough supplies to last you 6 months minimum.
A trade-weighted measure of the U.S. dollar against a broad basket of currencies that includes the Yen, Euro and China’s Yuan is at a post-gold standard low when adjusted for inflation, according to calculations by Deutsche Bank’s economic team. The milestone could be viewed as a failure of the country’s monetary and fiscal policies upon which all paper – or fiat – currencies are based.
“In our risk scenario, little progress on the fiscal front raises the probability of a fiscal crisis and the odds that the Fed becomes the buyer of the last resort,” said David Woo, currency strategist for Bank of America Merrill Lynch, in a note to clients today. “This would accelerate the process of the USD’s demise as the global reserve currency and cause it to decline in a disorderly manner.”
The dollar hit new 2011 lows versus the Euro and the British Pound Thursday as traders increasingly viewed Federal Reserve Chairman Ben Bernanke’s monetary policy press conference a day before as a bunch of hot air.
Gold settled at a record high for a 12th time this month on Thursday and is now up 31 percent from a year ago on concern that Bernanke has lost control over inflation and basically a idiot. Silver is inches away from its 1980 record and is up 150 percent in the last 12 months.
The dollar was convertible into gold until the early 1970s, when President Nixon ended that agreement. Soon after, as the major currencies went from fixed rates to floating, the U.S. dollar established itself as the world’s reserve currency because of its economy’s size and relative strength. Floating, paper currencies are only worth what others deem them to be and the country’s central bank can print as much, or as little, of it as it wants. The US dollar is almost worthless now.
“Since S&P downgrade last Monday it has become abundantly clear by policy makers, if it wasn’t already, that the Fed will print whatever it takes to avoid default and debase the buck to a point where it will be very unlikely to remain the world’s reserve currency.
All I can say at this point is to trade all your dollars in for gold and silver. your dollars will become completely worthless very soon.
