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The U.S. Dollar Falls by Fall
The second story illuminating the dollars path comes from Alan Greenspan. The former Fed Chief gave a warning about how the U.S. may soon reach its "borrowing limit." A Bloomberg story quoted Greenspan saying, "The federal government is currently saddled with commitments for the next three decades that it will be unable to meet in real terms," Greenspan said. The "very severity of the pending crisis and growing analogies to Greece set the stage for a serious response." (Click here for the Bloomberg article.) Please note Greenspans reference for the U.S. "commitments" that it, "will be unable to meet in real terms." That surely means the government will simply print money to pay its bills. The Federal Reserve could end up being the buyer of last resort for Americas debt, and that is highly inflationary. This brings me to the third story indicating the future direction of the dollar. The headline says it all: "Gold hits record as investors seek alternate asset." (Click here for the complete story.) The only conclusion you can draw is investors are seeking a stable store of wealth. According to world renowned gold expert Jim Sinclair (jsmineset.com), that spells trouble for the dollar. Sinclair said, ". . . thats not a pleasant conclusion because it speaks of a currency system in the entire Western world that is being significantly challenged." In an exclusive interview with USAWatchdog.com, Sinclair compared the U.S. to Greece– the same as Greenspan. Sinclair said the dollars true weakness has been concealed because the attention has been on Europe. Sinclair said, "Were rolling over in this so-called economic recovery . . . Its not a pretty picture, and the focus will come off Europe as soon as all the currency traders have made all the money . . . (then) its coming right back here. . . You look over here and you see 33 states are headed towards bankruptcy. Whats the difference between that and Greece? There's none." I asked Sinclair when will the dollar start plunging? He said, "The time horizon, I think, is four months." A plunging dollar will quickly cause higher prices for goods and services and, if things get really bad, Sinclair says, "If, in fact, this thing gets out of control, youll see decreasing supply (of goods) because of economic disruption of the means of distribution." Under an extreme loss of value for the buck, you can forget about cheap oil and gasoline. Sinclair says, "If the dollar falls out of bed, they shoot to the moon." Sinclair thinks what is taking place now is a "change in psychology and a loss of confidence that are now beginning to show themselves in market terms. You will still have the dollar around. It will still be in bank reserves, but its buying power will be severely reduced." This change in psychology is driving gold to one record high after another. Since 2001, Sinclair has been calling for gold to reach $1,650 a troy ounce by January 14, 2011. Some of Sinclairs contemporaries are calling for gold to be much higher by next summer. $5,000 per ounce by June is one prediction. Sinclair says, ". . . that only occurs if the whole thing goes splat," and that is also a real possibility.
In a story called "Produce the Note", Hunter uncovered in 40 percent of foreclosures the bankers cannot prove they legally own the property. If an embattled homeowner knows that fact, it could mean the difference between being thrown out in the cold and having a roof over his head. And in a report in March of 2008, Hunter exposed the hidden fact the banks were in trouble and the economy was headed for a fall. Greg warned viewers of the coming problems long before other reporters picked up on the looming financial catastrophe. In 2009, many in the mainstream media said things such as "no one saw the crisis coming." Hunter joined ABC News in 1999 from WTSP-TV in Tampa. He has earned a "National Headliner Award," an International "Freddie Award" for health and medical reporting, as well as investigative reporting awards from both the "Society of Professional Journalists" and the "Radio Television News Directors Association." |
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Last week, three stories acted as signposts for the direction of the U.S. Dollar. The first is about a letter President Obama sent to members of the G20 (Group of 20 major industrial countries) in advance of next weekends meeting in Canada. The Presidents letter asked members to "reaffirm our unity of purpose to provide the policy support necessary to keep economic growth strong." The policy he is talking about is to print money and run monstrous deficits to keep the world economy afloat. The talk in Europe is just the opposite. The EU these days is all about austerity and budget cuts which are hardly pro-growth. The Associated Press reported the story this way: In the letter, Obama said that the June 25-27 summit should also focus on efforts to stabilize public deficits in the "medium term," a reference to the administrations position that governments need to run huge deficits currently to provide the stimulus needed to ensure a sustained recovery but then move in future years to deficit reduction efforts. 
Greg Hunter has nearly 9 years network experience as an investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows. Greg is a hard hitting reporter that has a history of getting to the truth no matter how difficult the subject. Some of his stories include "
