Posted by: doggings | October 14, 2009

Pay Attention America !! Dollar Drowning Fast!!

This truth-hound was barking warnings more than a year ago that the decisions made meant the inevitable end of the Dollar as we know it.

Well it’s happening right now, .. fatally wounded the US Dollar has started it’s giant slide into oblivion..

Larry Edelson writes

Make no mistake about it.

The developments over the last three weeks affecting the U.S. dollar — which continues to sink in value — are the most critical financial developments of your lifetime.

The U.S. dollar has now entered the final days of its reign as the world’s reserve currency.

1. Behind closed doors, the G-20 countries have now taken control of the world’s economic caretaking. It is no longer the G-3 nations that are in charge … or even the G-7 nations. The G-20 is in charge.

Put another way, the U.S. is now being forced to placate our largest creditors in an international forum, where it is now just one of 20 countries in charge of the world’s economic affairs. And it is the largest debtor of the group, by far.

2. Behind closed doors, the Arab Gulf States have also been meeting with Russia, Japan and China to replace the dollar for pricing oil. Make no mistake about this: The world as you know it is changing.

3. And yet, in the open, in public, Washington isn’t making one single comment about these developments. Not one peep. Not even trying to jawbone the dollar higher.

Why? Because, whether our leaders admit to it or not, their top priority is clearly to let the U.S. dollar fall in value, even if it ultimately means that it will be replaced by a new world reserve currency.

Even if it ultimately means your cost of living is going to skyrocket, and everything you ever knew about the world is turned upside down.

Their hidden rationale: To inflate away the mountains of debts in this country, by artificially raising asset prices via devaluing the currency in which most of the world’s major assets are denominated.
Whether our leaders admit it or not, their top priority is to let the value of the U.S. dollar fall.

Don’t get me wrong. It is a sad state of affairs the U.S. finds itself in: The massive financial crisis, Washington’s gargantuan $125 trillion in debt, the real estate crisis, and ultimately, the end of the dollar as the world’s reserve currency.

But there’s nothing you or I can do about it, except protect our wealth and seek out the profits we can reap as well.

That’s why, back in April of this year in a Money and Markets column I wrote, I said unequivocally that real money — gold — was the only win-win investment I knew of.

Now, is it any surprise then that gold has busted through to new record highs?

Is it any surprise that gold mining shares are taking off to the upside, soaring as much as 8 percent in a single day last week?

Is it any surprise that other tangible asset markets are also starting to rally sharply again — oil, copper, platinum, palladium, and silver?

Or that even agricultural commodities look like they are bottoming and appear poised for significant rallies?

I don’t think so. It’s hardly surprising at all. For when paper currencies are devalued, savvy investors turn to natural resources and tangible assets to protect their money.

Natural resources, including gold, are starting to rally sharply again.

My view: If you’re not seeking out shelter from the falling dollar by investing in gold and other natural resources, your wealth is going to be confiscated from you on the sly by Washington.

That means it’s mandatory that now, more than ever before, you take the following steps …

First, with the next phase down in the dollar starting, continue to steer clear of all U.S. Treasury notes and bonds. Not only is the yield still meager, but with the dollar set to lose much more purchasing power in the months and years ahead, Treasury notes and bonds are a losing proposition. Period.

Also continue to steer clear of foreign sovereign notes and bonds. They too, while maybe more attractive in yield, will likely suffer as the world goes through a massive change in the currency markets, the result of the dollar’s eventual replacement as the world’s reserve currency.
Second, and very importantly:  GOLD

He cant make it any clearer to you, if you still want to waste your time arguing about trivial daily nonsense, Health Care systems that will fail as you go bankrupt anyway, that kind of thing, well then you can’t be helped.

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