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Anyone who hoped that the world’s 187 governments attending the IMF meeting in Washington would actually DO something to support the dollar is now sorely disappointed.
All the governments have accomplished was to demonstrate their impotence — their total inability to stop the massive forces now sweeping the globe. Meanwhile, even as I write these words …
Overseas investors continue to
dump the U.S. dollar and scoop up gold!
That’s why, just this morning, the U.S. dollar plunged to …
- The lowest level against the Japanese yen in 15 years …
- The lowest level against the Swiss Franc in 27 years, and …
- The lowest level against the Australian dollar in all history!
That’s also why gold soared again this morning — coming within fractions of yet ANOTHER all-time record high at nearly $1,360 an ounce.
In fact, there’s now so much fear of a dollar collapse, that London gold dealers report some well-healed INVESTORS ARE BUYING GOLD BY THE TON — more than $43 million — and even take physical delivery of the metal.
Meanwhile, the dollar’s plunge has put massive upward pressure on the price of food. Fearing inflation down the pike, investors have rushed to gobble up supplies of corn, wheat and soybeans, leading to ENORMOUS price gains — as much as 26.2 percent just in the last five trading days.
Thus, THREE of the world’s major asset classes — gold, commodities and currencies — are now in massive bull markets thanks to the dollar’s plunge.
Make no mistake about it:
The U.S. dollar is now facing
a full-scale forced devaluation.
Last Friday’s horrendous U.S. employment report — showing more than 95,000 jobs lost in September — is proof positive the U.S. economy is sinking.
And already, just three days later, the Federal Reserve is reported to be priming the printing press, expected to print as much as $65 billion a month in new fiat dollars, starting almost immediately — a key driver behind the dollar’s plunge.
The crux of the crisis: The U.S. dollar is the world’s reserve currency. So Federal Reserve officials seem to think they have the privilege and power to devalue the dollar without any consequences — all in a desperate attempt to inflate the U.S. economy and engineer a de-facto default on America’s massive debts to foreigners.
But now the Federal Reserve is facing a new, unexpected problem: Stiff COMPETITION from other central banks who ALSO want to devalue THEIR currencies.
We used to be one of the only ones saying this would happen. We warned readers of currency WARS many moons ago. But now, in separate meetings over the weekend, G-20 nations and the IMF both acknowledged that the world sits on the precipice of major currency wars.
This means that, to goose up the U.S. economy and inflate away the U.S. debt, the Fed is being driven to do a lot MORE than just run its money printing presses. It’s going to run the printing presses FASTER than other central banks are running theirs!
For many investors, this spells fear. For us, however, it spells great opportunities in the THREE asset classes that can enjoy massive, explosive bull markets when the dollar goes down — gold, currencies and commodities.
