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The Dollar Will Collapse Within 3-4 Months

Phoenix Capital Research's picture





 

The US
Dollar's inflationary death spiral continues. We've now taken out the 2010 low
leaving only two more lines of support before we're in completely uncharted
territory.


At its current rate of collapse, the US Dollar will do this within the next 3-4
months. This means the greenback will break into a new all-time lows by 2H11,
which will precipitate the coming inflationary collapse.


Small wonder then that both Gold and Silver recently hit new highs for their current
bull markets. With the greenback dropping like a rock, and rumors of QE 3
swirling around the financial community, what sane investor would bet against inflation?

On that note, now is the time to be shifting capital into inflation hedges. Those
who buy Gold and Silver will likely do very well in the coming months (my
personal view is Gold will clear $1,500 and Silver $40 this year).


We’re also
going to be seeing an increased wave of buyouts in the natural resources sector
as larger firms look to increase their resources via mergers and acquisitions
rather than spending the money to find and develop new mines.

 

The natural
resources sector will also benefit as large institutions (pensions, mutual
funds, etc) finally begin piling into inflation hedges across the board. Given
how little exposure the Big Boys have to inflation hedges even a small
percentage of assets under management, shifted into these sectors, could result
in sharp price spikes.

 

In other
words, buckle up, cause things are about to get REALLY interesting.

Good Investing!

 

Graham
Summers

 

PS. If
you’re getting worried about the future of the stock market and have yet to
take steps to prepare for the Second Round of the Financial Crisis… I highly
suggest you download my FREE Special Report specifying exactly how to prepare
for what’s to come.

 

I call it The Financial Crisis “Round Two” Survival
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. And its 17 pages contain a wealth of information about portfolio
protection, which investments to own and how to take out Catastrophe Insurance
on the stock market (this “insurance” paid out triple digit gains in the Autumn
of 2008).

 

Again, this
is all 100% FREE. To pick up your copy today, got to http://www.gainspainscapital.com
and click on FREE REPORTS.

 

PPS. We ALSO
publish a FREE Special Report on Inflation detailing three investments that
have all already SOARED as a result of the Fed’s monetary policy.

You can
access this Report at the link above.

 

 

 

 


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Mon, 03/28/2011 - 10:04 | Link to Comment johngaltfla
johngaltfla's picture

Don't see this happening. The Euro, definitely, the dollar? A wee bit more time is being purchased for it by the ECB's insanity.

Sun, 03/27/2011 - 23:24 | Link to Comment lucasjackson
lucasjackson's picture

IDIOTS THEY WERE, EACH AND ALL OF THEM.  What does it matter if gas is 4.00 a gallon and you make 100k a year, or gas is .25 a gallon and you make 12,500 a year?  The Federal Reserve has a dual mandate  to control inflation and promote full employment.   Think carefully.  Controlling inflation does not mean preventing it.  Promoting full employment is impossible if people are not kept on a treadmill chasing more and more dollars which are worth less and less to buy goods that cost more and more.  If you let the donkey eat enough carrots he will no longer pull the wagon, regardless of the amount of new carrots you entice him with.  The U.S. standard of living is still unsustainably high compared to much of the rest of the world. Destruction of currency does not destroy the underlying assets, capital applications and intrinsic wealth of a nation it ONLY EXPOSES TRUE VALUE.  Paper trillions may disappear but our labor pool will work much harder in order to feed themselves thus giving more work output.  Hopefully we will once again use our ingenuity, innovation and craftsmanship which has been dormant for a generation to regain our former status as the leading producer and manufacturer on this planet.

Fri, 03/25/2011 - 13:48 | Link to Comment dugorama
dugorama's picture

Japan (every level of society) will clearly need cash to either rebuild or relocate or flee.  No? They will dump UST to get it.  No?  Increased supply of UST means price falls, interest rates rise, dollar becomes what?  more attractive?  a safe haven again?

and where will all those Japanese people relocate?  Probably not China.

Fri, 03/25/2011 - 12:52 | Link to Comment pupton
pupton's picture

Hysteria stirred up to get hits on his website...the dollar will die a slow and painful death over the course of years, not "2H11".  No other evidence besides technical/chart data?

Fri, 03/25/2011 - 12:40 | Link to Comment Unlawful Justice
Unlawful Justice's picture

If charts could predict the future or point to events, we would all be millionaires.  

Fri, 03/25/2011 - 11:51 | Link to Comment anony
anony's picture

If only I could BBEELIEEVe this.

My Singapore dollars, 2% portion of my assets, I would put every dollar I could get my hands on into more of them, then go off to St.Bart's until December when it gets too chi-chi, and then fly off with my new-found fortune to St. Lucia, or Mustique and hang with Sting or  Charlize.

Fri, 03/25/2011 - 11:06 | Link to Comment Spigot
Spigot's picture

You know, TPTB can also read charts. I doubt they are going to wake up one morning and slap themselves saying "Oh my! What shall we do now!..." Nope. It will not be a chartable thing when it happens. It will be an event or series of them that no one can predict, which is outside of human response ability.

Fri, 03/25/2011 - 10:00 | Link to Comment GoldVsFRNdotCOM
GoldVsFRNdotCOM's picture

UnKle Buck opens the door for Eurocharmin. Lady EC exits first.

Fri, 03/25/2011 - 04:34 | Link to Comment Escapeclaws
Escapeclaws's picture

My sheep entrails say 6 to 8 months minimum. I'd pit them against your chart any day. If you don't believe me, I'd be happy to send them to you so you can see for yourself. I call this Sheepnical Analysis, or SA for short.

Fri, 03/25/2011 - 03:31 | Link to Comment Jack Sheet
Jack Sheet's picture

Define "collapse". In journalism that could mean a drop of 5%.

Fri, 03/25/2011 - 02:15 | Link to Comment TumblingDice
TumblingDice's picture

That chart simply does not yell out "collapse" to me. It hasn't happened and it won't happen. It is too easy for the bankers to buy dollars.

Thu, 03/24/2011 - 23:54 | Link to Comment NonAggressionPr...
NonAggressionPrinciple's picture

+1

with all that previous resistance (ie buyers) its far from a done deal that it will continue at this rate

Thu, 03/24/2011 - 23:48 | Link to Comment Peter Carson
Peter Carson's picture

RE: Zbigniev Brezinski - easier to murder 7 BILLION - than to control.

Makes psycho-pathetic-sence, to launch plans converting cities into graveyards during late fall/early winter. Contemporaneously gets the-job done using MOM-nature, makes it simple to cut-off egress, with added bonus for clean-up crews - handling FROZEN putrified bodies - will be much more pleasant.

 

Thu, 03/24/2011 - 23:26 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

There will be no hyperinflation in the US and the greenback will never collapse. Please stop posting this nonsense.

Fri, 03/25/2011 - 03:58 | Link to Comment akak
akak's picture

"Rome is forever!"

"It is the divine right of kings to rule over men."

"If man were meant to fly, he'd have wings."

"The threat from the Soviet Union will last for at least the next century."

"Housing prices never fall."

 

Man-made paradigms, much like the cowardly and myopic kneejerk deference to corrupt authority of Leo Quislingasskiss, are fragile and ephemeral things with little supporting them except blind and desperate belief in the permanence of the status-quo.

Fri, 03/25/2011 - 11:54 | Link to Comment anony
anony's picture

Not to be niggling (yes you can still use that word, Mr. Twain) but uhhh....who do you know, which MAN or woman do you know, who can fly?

I was in Rome last year.

What has changed about our kings, princes, and lords?  They still do rule over us.

I feel a threat every day from the Soviet.

 

Fri, 03/25/2011 - 15:47 | Link to Comment akak
akak's picture

As long as we are splitting hairs:

Quote #1 refers to the Roman Empire, not the city itself (this was a commonly repeated refrain during the latter days of the Western Empire);

Quote #2 refers to the theory of The Divine Right of Kings, for which I do not hear many proponents nowadays;

Quote #3 refers to man's ability to move through the air, not necessarily under his own power;

As for quote #4, correct me if I am wrong, but I do believe that the Soviet Union was disbanded around 20 years ago --- I think I remember reading something about it in a newspaper.

Thu, 03/24/2011 - 23:06 | Link to Comment Coldfire
Coldfire's picture

It is difficult to make predictions, especially about the future.

Fri, 03/25/2011 - 11:59 | Link to Comment anony
anony's picture

"When cryptography is outlawed, bayl bhgynjf jvyy unir cevinpl".

Thu, 03/24/2011 - 23:19 | Link to Comment eddiebe
eddiebe's picture

Love that quote!

Thu, 03/24/2011 - 22:40 | Link to Comment bigdad06
bigdad06's picture

Old news! Martin Armstrong already predicted this with his Economic Confidence Model. The dates are June 13/14, 2011. Nice article though!:))

Fri, 03/25/2011 - 05:49 | Link to Comment rich_wicks
rich_wicks's picture

June 14th would be awesome, it's my birthday!

Oh, and Flag Day, so it would be a nice irony too.

Thu, 03/24/2011 - 22:32 | Link to Comment laosuwan
laosuwan's picture

Karl Marx Predicted the collapse of US Dollar in 1857. Jean dixon predicted the collapse of the US Dollar in 1974. Pheonix Capital predicted the collapse of the US Dollar in 2011. I predict Pheonix Captial will end up like Karl Marx and Jean Dixon and the US dollar will still be there.

Thu, 03/24/2011 - 23:16 | Link to Comment eddiebe
eddiebe's picture

'....the US dollar will still be there.

'   Sure it will be if that is in the bankers best interest. And of course it is. What a scam. The printing press and a way to buy any market for whatever purpose anytime anywhere, and all the muscle to back the buck with the worlds vastly superior military might ever.

 I predict at some point they will link the dollar to the Pm's to soak up liquidity and to restore credibility to the greenback,( we're not nearly there yet ) but that will be at gold prices far above what they are ,to destroy as much fiat debt as possible.

 Then the fractional reserve game can re-set.

 By the way, when there is a true link, before dilution sets in, the bankers will manage interest rates up, way up, so they can have another 30 years of high interest payments from you and me.(Paul Volker style)

 Great scam eh?

 

Wed, 03/30/2011 - 22:50 | Link to Comment laosuwan
laosuwan's picture

Great scam eh?

 

Yes, and elegant, too.

 

Fortunately, there is a way to beat their game and that is not to go into debt.

Thu, 03/24/2011 - 22:29 | Link to Comment Psquared
Psquared's picture

Hank ... is that you Hank? Marshall law anyone?

Forgive my cynicism but this article is total BS and rank sophomoric journalism. Actually, it is not really journalism, but it is rank and it is sophomoric. We have been hearing this song and dance since 2007 - going on 4 years and it hasn't happened yet. The more people who say it will happen the more inclined I am to buy stocks and anything else demoninated in dollars.

Thu, 03/24/2011 - 22:20 | Link to Comment steve2241
steve2241's picture

"The Coming Inflationary Collapse"

Could be the title of a new Harry Browne paperback!

Thu, 03/24/2011 - 21:42 | Link to Comment JimboJammer
JimboJammer's picture

It  is  a  Deflationary  Death  Spiral  if  you  just  look  at  house  prices.... 

Thu, 03/24/2011 - 21:26 | Link to Comment pragmatic hobo
pragmatic hobo's picture

FUD

Thu, 03/24/2011 - 21:10 | Link to Comment Campagnolo
Campagnolo's picture

Dollar will not collapse, at least on our lifetime....I like gold and silver, and I know dollar is losing purchase power, however it will not collapse. Do not understimate goverment, they are ahead in a couple decades, they ae play a dirty game, sure...but in the end China will lose...many americans will suffer, we are now, but we will not see dollar desapear....maybe when gold reach over $5000, silver $250, oil $200, etc (example)...a new dollar will be issue, back on what China is looking for and need the most to keep growing: commodities!...dont understimate!

Fri, 03/25/2011 - 05:49 | Link to Comment rich_wicks
rich_wicks's picture

Why would the dollar not collapse?

What if the US government really has 8000 tons of gold, and plans to put the world on a gold standard in the end?  That would get rid of it's debts, and make the United States a pretty rich nation, while at the same time impoverishing anybody in the world that has their currency pegged to the dollars.

In another note, I have to admit, campagnolo is better than shimano.

The US is a resource rich nation still.  We got plenty to sell to the world if it comes down to it.

Thu, 03/24/2011 - 23:00 | Link to Comment eddiebe
eddiebe's picture

Camp, you make sense.  

Thu, 03/24/2011 - 21:09 | Link to Comment Pumpkin
Pumpkin's picture

66Sexy, if the Fed benefits from deflation, why has the dollar lost 95% of its value since 1913?  Not saying the dollar will crash that quickly, but the Fed seems to like inflation much, much more than deflation considing its 100 year track record.

Thu, 03/24/2011 - 21:11 | Link to Comment Republican Lackey
Republican Lackey's picture

I'm living pretty comfortably on the 5% that's left.

Thu, 03/24/2011 - 21:04 | Link to Comment PulauHantu29
PulauHantu29's picture

I still feel it will be slow dollar death rather then a quick one due to the massive fraud,ooops, I mean "intervention" by CBs.

Thu, 03/24/2011 - 20:42 | Link to Comment Republican Lackey
Republican Lackey's picture

Hasn't everyone been saying this for the past 2 years? Like a blind man playing tennis.

Thu, 03/24/2011 - 20:33 | Link to Comment NidStyles
NidStyles's picture

Collapse mean's no one uses it anymore. Not in 3-4 months. Maybe in a year after a lot of pain.

Thu, 03/24/2011 - 20:19 | Link to Comment JimS
JimS's picture

Excuse me, but the dollar has dropped at an 18% annualized rate over the last 9 months. If the stock market dropped at a similar rate, I'd call it a collapse. Just saying.

Thu, 03/24/2011 - 20:41 | Link to Comment JimS
JimS's picture

We've got a 4-more point drop, until we are in uncharted territory. Looks pretty good for all "hard assets", as they are the only storehouse of real value. No other fiat looks any better than the Dollar at this point, except the Swiss Franc, and I don't believe they will be able to hold out either, from this world-wide currency "race-to-the-bottom". We could easily see the Dow head to 36,000, and the S & P head to 5000, but would it really be worth anymore than right now, if the Dollar Index dropped to 20?

Thu, 03/24/2011 - 23:21 | Link to Comment steve2241
steve2241's picture

In a world-wide currency-race-to-the-bottom, there can be no winner but the currency with global reserve status - $$$. And I'm not talkin' about the Mexican Peso!

Thu, 03/24/2011 - 20:34 | Link to Comment Money 4 Nothing
Money 4 Nothing's picture

Lookie here, the dollar is trash, there are countries overseas that will not accept the greenback for purchases, you have to convert to there currency then make your purchace. For Crimminy's sakes, there are towns in Mexico that don't even want it.

The Buck is going to epic fail, just a matter of time.

search: "Mexico will not accept USD"

"Other payment methods such as credit cards of all types and all issuing banks, Travelers Checks, Mexican pesos and non-American foreign currencies (such as Euros or Canadian Dollars) are not affected in any way by this new law."

Then you tell me. It's some anti laundering law that ONLY effects the USD?

Thu, 03/24/2011 - 20:52 | Link to Comment fijisailor
fijisailor's picture

What an assinine comment.  Anyone who has ever traveled overseas knows that you have to exchange your dollars for the local currency at a bank or money exchange office.

Thu, 03/24/2011 - 21:54 | Link to Comment Long-John-Silver
Long-John-Silver's picture

Not so! I've traveled extensively having been in both the US Navy and US Army. In the good old days a US Dollar was good anywhere. They loved to take "real" money in place of their own and give you back change in their worthless currency.The especially liked $100 bills. Soviet operatives paid a high premium  for $100 greenbacks. They used them to pay spies for information.

 

Now the reverse is true. No one wants the US Dollar

Thu, 03/24/2011 - 23:39 | Link to Comment SilverBaron
SilverBaron's picture

True!  I know a guy who does business in China and they used to love $100 bills.  Now they frown on them.

Thu, 03/24/2011 - 20:11 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

A dollar collapse and "my personal view is Gold will clear $1,500 and Silver $40 this year".

LOL.  Ya think?

Thu, 03/24/2011 - 20:45 | Link to Comment Republican Lackey
Republican Lackey's picture

 Keep laughing. You'll be crying soon. LOL.

Thu, 03/24/2011 - 20:06 | Link to Comment Prostar
Prostar's picture

My friends this could be fast or slow.  The long term prospects haven't changed because of the way the system was designed and furthermore the way the dollar is being debased.  For those who disagree history provides all the proof that "Fiat" currencies such as the dollar have a life span of no more than 40 years.  Just look what happend in Great Brittain in 1967 with its currency back then.  Weimar is another fine example and we have Zimbabwe today.  So do not be fooled into thinking the same crap can't happen in the USA.  Buy precious metals NOW.

Thu, 03/24/2011 - 20:00 | Link to Comment f16hoser
f16hoser's picture

Some have said a "collapse" will be when the dollar loses it's reserve status and 25-40% less in purchasing power. Translation, higher prices for the things we need on a daily basis. Interpret "collapse" any way you want. Bottom line, the next 6 months are gonna suck!

Thu, 03/24/2011 - 23:26 | Link to Comment SilverBaron
SilverBaron's picture

4 dollar gas is already sucking!  (yes, here in SoCal it is already 4 and doing major damage)

Add 40% and you get to 5.60--Catastrophic!

It will cause margin collapse.

No profit = no jobs.

Thu, 03/24/2011 - 19:57 | Link to Comment Bill Lumbergh
Bill Lumbergh's picture

Most major currencies have issues namely too much in circulation and interest rates held artificially too low.  In 2008 everyone was convinced the dollar end was near and loaded up with every commodity for protection to be annihilated shortly thereafter.  I am bullish on precious metals but if the US dollar were to "collapse" the world economy would be in a death spiral.  Imagine the domino effect that would cause with currency pegs and dollar holdings of other countries.  Of course anything is possible but when almost every other currency has as many fleas one must wonder if such an outcome is likely.

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