The Dollar’s Gone Metastatic
|
Dear Reader,
Problems with the U.S. dollar affect every country in the world. It remains the primary reserve currency held by almost every central bank. But they are now in a quandary as to what to do with it. You are in that same boat and need to fully comprehend the ultimate outcome.
The global credit crunch, courtesy of U.S. subprime debt instruments, continues to play out. A large British bank, Northern Rock, just experienced an old-fashioned bank run. California apparently remains a trendsetter, since their recent runs on Countrywide Bank.
Lower interest rates and easier money (liquidity) are portrayed as the solution … even though this was what started the current fiasco in the first place.
The dollar will take the brunt of these actions, and rightfully so. The NY/DC axis of Bubbleologists will spin this as somehow of benefit to you. Don’t fall for it.
I presented a four-part series entitled “The Buck Has a Stage-4 Malignancy” last spring (click on the following dates for each column: March 28, April 4, April 11, and April 18). The writing was on the wall. This particular VIP patient had one ugly prognosis - currency cancer.
The eventual outcome was clear, but the timing was uncertain. The problem has now metastasized to the four corners of the earth.
--------------- INTERNAL ENDORSEMENT --------------
Earnings Season Blowout...
Make More Money in Five Weeks
Than Most Investors Make All Year
Many investors fear holding a stock that is about to report earnings. But if you’re on the right side of those moves, the volatility of earnings spells profits... and I mean big profits. In fact, the quarterly earnings seasons can be the most lucrative times of the year for your portfolio.
Over the last six months, I have already led readers to gains of 151%... 136%... 149%... 90%... and the list goes on. And all of these gains were achieved in a matter of days or weeks.
Now, on a FREE tele-conference call, I’ll show you exactly how we do it.
-----------------------------------------------------
Here’s a one-year look at the Dollar Index over the past year:
Gosh, I must be a financial Nostradamus or something! The dollar has gone down severely since the spring articles. I’ve just been paying attention to underlying dollar fundamentals for an extended period of time. It is risky to your economic health to not do so.
Let’s also look at a two-year dollar chart:
Hmmm. Nothing pretty there. Maybe the five-year chart will brighten the picture:
Watch it, McDougal, now you’re frightening the kids and CNBC aficionados. More ugliness like this and you’re out of here. Let’s peek at the USDX since inception in 1972:
Much better, no? At least there was some good stuff going on in the 1980s, dollar-wise.
Here’s another chart that goes back to the time the Fed was established in 1913 to preserve the dollar’s purchasing power (courtesy of Nick Laird at Sharelynx Gold). This one tracks the CPI or dollar’s purchasing price:
Enough already. Quite obviously, a kindergarten class could have projected a dollar downdraft since last March. Duh. The Fed is a fraud from inception. You want to trust them with your financial future during times of historic global crisis?
What difference does this dollar problem actually make? Who cares? Life goes on. Business as usual since 1972. Or is it? The dollar has only sunk below the 80 level a few times since that time. As of this writing, it is at 79.47, right on the historic precipice.
Something has to give with the current and ongoing financial chaos. What entity do you think will be sacrificed?
The economy
The real estate market
Politicians
The Fed
The stock market
Hollywood
Britney Spears
The Buck
I vote nos. 3 and 4, but that’s not likely. What will the obvious answer mean to you in the long run?
I guess we’re back to talking about the dollar once more. Do they allow visitors in hospice?
Gold, silver, and real asset investments will reap the benefits of the ongoing dollar carnage. Next week, we’ll delve deeper into what the dollar woes actually mean to you and your family.
Invest Resourcefully,
Rusty
P.S. The dollar is due a bounce higher in the very short term. Those who successfully shorted it now have to buy it back to lock in profits. It should then resume its downfall.
P.P.S. To let me know what you thought of today's article, send an e-mail to: feedback@investorsdailyedge.com.
[Ed. Note: Dr. Russell McDougal has dedicated years of study and investing in the natural resources exploration sector. During that time he has closed out DOZENS of gains of 500%... 1,000%... 2,000% and more! Currently he is sitting on multiple thousand percent winners, including one stock that is up a whopping +5,000%. And for a select group of investors, Rusty has agreed to share his secrets of success... and his top stock recommendations. Click here to learn more... ]
 |
This investment news is brought to you by Investor’s Daily Edge. Investor’s Daily Edge is a free daily investment newsletter that is delivered by email before the market opens. It’s published by Fourth Avenue Financial, a subsidiary of Early To Rise (an affiliate company of Agora Publishing). In each weekday issue you’ll receive practical strategies for protecting your portfolio and multiplying your money. You’ll also learn about undiscovered opportunities in emerging sectors and markets, deeply discounted stocks, recommendations for bonds, cash, commodity and real estate investing, and top ETFs. To view archives or subscribe, visit Investor's Daily Edge.