The Fiat Dollar, Agree or Disagree
What you are about to read is downright scary…. especially since the large majority of people are unprepared and unprotected, and could be in a world of hurt.
Now, I truly hope that Russell is wrong…. dead wrong.
But no matter how much I wish our economy wasn’t going through this, I’ve got to protect myself in case he is right. That’s why I have my “insurance” in place.
Richard Russell’s Dow Theory Letters is one of the most authoritative and consistent Market commentaries in the world… an absolute “must read” for any trader looking step up his or her game.
Because, quite frankly, when Richard Russell speaks… everyone pays attention.
That’s why I wanted to share with my loyal subscribers a brief portion of his most recent report.
Here is what Russell wrote,
“When the primary bear market started, I said that the primary trend will have its way no matter what, and that the best strategy was to leave it alone and let it fully express itself. ‘No, no,’ insisted Bernanke and the administration, ‘We know how to circumvent a severe recession or another great depression, we’ll spend our way out of it.’
The result — the Bernanke Fed and the Obama administration (Keynesian advisers Summers and Geithner) are destroying their own fiat dollar. In the end, they’ll have done much more damage than another great depression would have done.
Those who claim that we’re in a new bull market don’t understand what is actually happening. We’re in a subtle bear market in purchasing power as our currency goes down the drain. And what if the dollar loses it reserve status and nobody will accept the fiat paper that we grind out? Talk about trouble, we haven’t seen trouble yet.”
Now, I am not affiliate and won’t be compensated in any way, but if you too want to get Russell’s Dow Theory Letters, just click here.
In the mean time, leave a comment below and let me know what you think of his statement.
Jeff
8 Responses to “The Fiat Dollar, Agree or Disagree”
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The 1st thing that came to mind after reading the letter was to look at every time some sort of debacle happens.Where does the whole world run to ? The Dollar everytime. Steve Gutshall
They are destroying this country in more was than this.
It is not only the Fed and the US government destroying the dollar it is also the CEOs and high paid management and traders of the banks and investment banks that are also doing a number on the dollar. Part of it depends on how the high compensation and bonus are handled-whether they are put to work in the capital markets or are the funds put into Swiss bank accounts, gold, or land. What I am trying to say with some difficulty is that if the high compensation of CEOs was funneled back down the production chain in reduced unit cost then goods would be cheaper for the masses or the labor unit cost for the working people could be increased which would create more demand on the lower end of society. In ways the high compensation of CEOs should really create a deflation situation whereby liquidity is taken from the middle to lower classes and concentrated in the hands of the few(this is I would think happening now);however on the other side of the coin the liquidity of the world is concentrated in a few hands with the middle class(what is left of them) and the lower class supported by a government that printing money to provide the support which gets funneled to the rich which do not need it and then it depends on what they do with that liquidity. I can see a case for both inflation and deflation-can the rich with all the liquidity provide inflation, they are a minority-can the middle and lower classes provide the fuel to drive inflation??? What happens when crude oil hits $150 per barrel again with about 18% of the US working population on the government dole(like why do we need to drive) and yet there is all that money created and what does it really mean if we have no wage increases and continual unemployment. I am lost on this whole mess and I do not understand the current valuation of the stock market in relation to the value of resdentail and commercial real estate, high unemployment, high US debt levels, and a number of cities and states next to defaulting on their bonds-beats me.
I spent the last 6 months of 2009 researching what is really going on. I have awesome sources. I found the person who first made it clear to anyone who would listen what is going to happen. The dollar will be devalued and this is a planned event. By the way, the whole sub-prime mess is a planned event. The people running the show on this Earth have a goal of removing the U.S. middle class by destroying their wealth. When I attempt to share this info with people, they have no interest in knowing what is going on. My leading Global Economic Cycle Info Source says: “people are sleep walking into the future”.
jeff, right around new years i believe i recall you saying that you were going to try and learn how to trade forex. any progress on that? i tried to self teach myself without much success.
I know of several other analysts making the same prediction – bigger question may not be IF this happens, but WHEN??
You are all welcome in Greece.Our Financial Status here is at its Best Shape…
How things change.