SFO Mag - The coming dollar crisis

Discussion in 'Economics' started by wabrew, Feb 26, 2006.

  1. wabrew


    Stocks, Futures and Options Magazine. The March issue is a must read!

    John R Hummel writes an article 'Can the present dollar system survive'?

    In it he describes the history of the dollar as the reserve currency, how it became the shaky reserve it is today, and the events that have led up to what he refers to a 'likely collapse' of the dollar.

    If you do not subscribe, here is a link to that article


    If that did not work then go to sfomag.com and page down to this article.
  2. mahras2


    He is a little late/early to the game huh ;)

    I remember when right at the very top, everyone was going wild about how the EURUSD rate would hit high 1.4, low 1.5s. Well it dipped to 1.16s instead.

    These professional predictors rarely get things straight.
  3. The American dollar Fiat money system is based on confidence thats it. Nothing else. I think the end of M3 reporting is the begining of the end. The writing is on the wall. Honestly I am suffering from frozen headlights syndrome, praying gold and the euro will go down so I can dump USD.
  4. wabrew


    The major thrust of this article is that foreign central banks have absorbed so many dollars that they will soon view the US debt obligations as larger than it is capable of repaying. Some event, an oil crisis or something unseen, can easily tip the unsteady balance that currently exists causing inflation here. This then sends the long bond on a downward spiral, exacerbated by foreign bank sales.

    He makes a convincing argument that the major “adjustment” began at the end of 2001 and that 2005 was just a short term interruption to a long term dollar collapse.

    Like I said – A must read!
  5. wabrew


    Read this article - You cannot believe where he thinks gold will go. I am not a gold bug, I hate gold. But if he is right I am the damn fool.

    If the dollar is really worthless, and if you want to own gold, why wait?
  6. wabrew


    Here is a link to John Hummel's web site.


    click down to 'Gold strategy, begin tour here' to see his 20 page power point presentation on why gold is going up.

    Again - I am not a gold bug! Just thought this guy really has a handle on the markets. Almost everything he predicted about commodity prices in late 2004 happened in 2005.
  7. mahras2


    I like the commentary by these "gold bugs" a bit more. They also discuss many different topics and I like their analysis:
  8. Chagi


    Didn't read his article yet, but it sounds like the author must have read "Empire of Debt" recently.
  9. Cesko


    Did you just wake up? When I came to the U.S. 20 years ago, shelves in the bookstores were already full of "collapse of $$" books.