I want to
take a moment to address the US Dollar’s collapse.
Dollar which most investors follow is the US Dollar index. This represents the
US Dollar’s value against a basket of major currencies: the Euro, Japanese Yen,
that for a moment: the way we measure the US Dollar’s value is against a
collection of other un-backed paper currencies all issued by over-indebted,
words, its nonsense.
point, the Euro comprises over 50% of the US Dollar index. What’s the Euro? A
currency backed by a loose group of bankrupt nations with maybe two solvent
members in the bunch. Greece has already asked for an extension on its bailout
repayments (like they’re ever going to repay anything), Spain is bankrupt,
ditto for Ireland, Italy, Portugal, and others.
As for the
more solvent European members (Germany and maybe
France) their political leaders are getting crushed in the elections because
NOBODY who actually works for a living (or has a working brain) wants in on the
So in Europe
we’ve got one perhaps two solvent countries that are supposed to bailout 5+
insolvent ones (like that’s even possible). And the solvent countries are
comprised of people who want no part of the Euro.
that’s what I call a real currency.
terms, to claim the Euro is a viable currency is pure insanity. And yet, this “currency”
comprises 50% of the US Dollar index (not as though the Yen or US Dollar are worthwhile
My point in
all of this is that measuring the greenback using the Euro is insane. 100%
totally insane. Which is why claiming the US Dollar is not collapsing is BS. If
you actually go outside the US (which
99% of commentators don’t) you’ll find that the US Dollar is worth much less
than the Dollar index is telling you.
recently on a trip to South America looking at real estate. While there I was
told repeatedly by developers that they didn’t want to sign a contract in US
Dollars. Instead they wanted to do it in the local currency. This has NEVER happened before during my
trips abroad (even as recently as 2009).
When I pushed
for having contracts based in Dollars, the price went up EVERY week.
The reason? The US Dollar is falling in relation to the
local currency on a daily basis.
So here are
local businessmen, (not economists or analysts), people who actually work for a living, refusing to accept US
Dollars during business transactions.
should tell you just where the US Dollar stands on the international stage.
terms, the US Dollar crisis is already underway. If you ignore the stupid
headlines and pay attention to the real world you can already see it. Prices of
goods are EXPLODING higher. It’s being hidden because retailers are downsizing
the size of their packages OR packing less goods in the same space (look inside
any cereal box or other dry good and you’ll find that at best it’s 75% full).
So if you
think things are fine because the US Dollar chart shows we still have a few
lines of support, you’re being mislead. The US Dollar is worth far, far less
than the chart shows you. So if you want to prepare yourself for a currency
crisis you need to move now.
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