Archived Post from January 15, 2013 by webdev
One of the pillars of Anne’s investment philosophy is betting “short” on the greenback – in other words, adopting as one of her fundamental tenets that the good ol’ U.S. dollar will continue to deteriorate and, one day, will collapse altogether.
Given that premise, as well as the spiritual architecture of Anne’s investment philosophy, precious metals present themselves as the best and only place for an investor to turn. But why is Anne so sure that the dollar is actually caput? After all, it has survived more than two centuries in circulation and, during the last century, became the one true global currency, relied upon by investors, consumers and citizens around the world for presenting tried and true value through all sorts of tribulations. Here are 10 reasons that Anne is so confident in betting against the dollar:
1. The dollar is being battered anew by the policy of Quantitative Easing 3 – already turned into a joke as “Quantitative Easing Infinite” by pundits – that has been launched by Fed Chairman as a desperate, last-ditch measure to attempt to stimulate the U.S. economy, help win the election for President Obama, and help save his own job. Every new dollar that the U.S. government prints to supply Bernanke’s “easing” only further dilutes the already-thin value of the currency.
2. The dollar will suffer because hyperinflation will be setting in soon, meaning that it will take more and more dollars for consumers to purchase what they want to buy. Hyperinflation is the inevitable result of the huge government deficits and rampant dollar-printing that have been pursued as policy by the Obama administration. The only reason hyperinflation hasn’t smacked the economy so far is that the Great Recession, and the subsequent sluggish and slowing growth around the world, have dampened down inflationary effects for a the time being because there has been so relatively little economic demand.
3. The dollar is in trouble because the U.S. government alone is in debt by more than $16 trillion dollars, and no one seems to care enough to really attack the problem. Working beside that big a stack of obligations is the nonchalant modus operandi of the Obama administration. The president couldn’t even recall the amount of our national debt in his recent interview on David Letterman’s show.
4. The dollar will become much less valuable simply because there is no way for anyone, or any government, to address this mess without replacing the dollar with a new currency. In fact, there are increasing calls from the mainstream of U.S. political discussion – not just the “fringes” – for returning America to a gold standard as the basis for value for the dollar.
5. The dollar no longer is considered the benchmark for currencies around the globe, and even major western financial organizations are moving away from the notion of always relying on the dollar to denominate international transactions. The talk now is about a “basket” of leading currencies that would include but not be exclusive to the dollar. Any such move can only cut the legs out from beneath the greenback.
6. The dollar also is imperiled because, besides the monstrous federal deficit, U.S. cities and states and American consumers owe another $100 trillion dollars.
7. The dollar won’t be bailed out by China much longer. Purchases of U.S. T-bills by China has helped prop up the dollar over the last several years, as the Chinese government has in effect become America’s creditor of last resort. But the once-torrid Chinese economy now is cooling along with the rest of the world, which will tend to undercut the ability of the Chinese to keep buying T-bills.
8. The dollar also will come under pressure because of the awful state of finances of America’s households. The U.S. economy remains on life support despite all the political rhetoric, and so does the dollar along with it.
9. The dollar is the ultimate example of debt-money. As the basis of a global economy that is teetering badly, the U.S. currency must fail in the long term because the Bible assures us that only God’s Money – gold, silver and other precious metals – ultimately will survive.
10. The dollar is only as good as the American people’s resolve not to get rattled by economic events that will continue to unravel the global system. And as and when this collapse becomes evident to everyone, the only investments that will have any value will be those not denominated in dollars – mostly, gold and silver.
That’s why you need to call Anne Trimble at Real Money USA … now … at 866-966-0177.