One of the pillars of my investment philosophy is betting "short" on the greenback-- in other words, one of my fundamental tenets is that the great ol' USA buck will continue to weaken until a day comes when it will certainly collapse.
Given that premise, as well as the spiritual architecture of my investment philosophy, precious metals present themselves as the best and only place for an investor to turn, here are 5 reasons that I'm so confident in betting against the dollar:
1. The dollar is being battered once more by the policy of Quantitative Easing 3-jokingly referred to as "Quantitative Easing Infinite" by pundits. QE3 has been introduced by Fed Chairman as a desperate, last-ditch step to try to stimulate the U.S. economy, aid President Obama win a second term, and help save his very own job. Every new dollar that the U.S. government prints to provide Bernanke's "easing" only further waters down the already-thin value of the currency.
2. The dollar will unquestionably suffer since hyperinflation will definitely be setting in soon, suggesting that it will take an increasing number of bucks for consumers to buy what they wish to get. Hyperinflation is the result of the big federal government insufficiencies and widespread dollar-printing that have actually become part of the policy of the Obama administration. The only reason hyperinflation hasn't hit the economic situation as much is that the Great Recession, as well as the slower economic development around the planet, has actually slowed down inflation for now because there has actually been relatively little economic demand.
3. The dollar is also in jeopardy because the U.S. federal government alone is in financial obligation by well over $ 16 trillion. Ironically, no one appears to care sufficient enough to truly address the issue. Working against a resolution of this crisis is the nonchalant modus operandi of the Obama administration. President Obama could not even remember the amount of our nationwide financial 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 is no longer considered the standard for the value of money around the world. Even Western economic organizations are moving away from the concept of constantly counting on the dollar to denominate international financing. The talk now is on a "basket" of leading currencies that would include the dollar but not consider it exclusively. However, any such action will only knock the legs out from beneath the greenback.
Given that premise, as well as the spiritual architecture of my investment philosophy, precious metals present themselves as the best and only place for an investor to turn, here are 5 reasons that I'm so confident in betting against the dollar:
1. The dollar is being battered once more by the policy of Quantitative Easing 3-jokingly referred to as "Quantitative Easing Infinite" by pundits. QE3 has been introduced by Fed Chairman as a desperate, last-ditch step to try to stimulate the U.S. economy, aid President Obama win a second term, and help save his very own job. Every new dollar that the U.S. government prints to provide Bernanke's "easing" only further waters down the already-thin value of the currency.
2. The dollar will unquestionably suffer since hyperinflation will definitely be setting in soon, suggesting that it will take an increasing number of bucks for consumers to buy what they wish to get. Hyperinflation is the result of the big federal government insufficiencies and widespread dollar-printing that have actually become part of the policy of the Obama administration. The only reason hyperinflation hasn't hit the economic situation as much is that the Great Recession, as well as the slower economic development around the planet, has actually slowed down inflation for now because there has actually been relatively little economic demand.
3. The dollar is also in jeopardy because the U.S. federal government alone is in financial obligation by well over $ 16 trillion. Ironically, no one appears to care sufficient enough to truly address the issue. Working against a resolution of this crisis is the nonchalant modus operandi of the Obama administration. President Obama could not even remember the amount of our nationwide financial 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 is no longer considered the standard for the value of money around the world. Even Western economic organizations are moving away from the concept of constantly counting on the dollar to denominate international financing. The talk now is on a "basket" of leading currencies that would include the dollar but not consider it exclusively. However, any such action will only knock the legs out from beneath the greenback.
About the Author:
Learn more about buying and selling gold and silver. Or, stop by Anne Trimble's site where you can find out all about her latest bookFaith Through The Flames.
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