Tuesday, January 11, 2011

The Dollar Collapse: The financial endgame

From: http://www.thedollarcollapse.com/

The financial endgame
Sovereign nations that cannot meet their financial obligations typically resort to the currency printing press. The inevitable result is debasement of the currency. This is the course the U.S. government and the Federal Reserve have taken.

The unfolding bank solvency crisis and the attempts to prevent a systemic collapse have accelerated the debasement of the dollar. When everyone begins realizing that paper money is limitless, the dollar will descend rapidly. Current fears of "deflation" will vanish. In addition, tapped out U.S. consumers will no longer be purchasing trillions worth of exports. That will eliminate the incentive for our trade partners to continue supporting the dollar. When substantial foreign investment starts to flee our currency for safety elsewhere, the Federal Reserve will be forced to monetize the U.S. debt instead of selling treasury bonds.

At that point the currency printing presses will be running full speed. It will be the beginning of a U.S. hyperinflation. Nobody can predict when it will happen. Since most financial activity is electronic, when the unraveling begins it will progress very rapidly. The timing of the fall does not matter, however, if you are prepared.

http://www.stansberryresearch.com/pro/1011PSIENDVD/PPSIM128/PR

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