This article from Peter Schiff’s Euro Pacific Capital Market Commentary suggests that the world is gearing up to reject the Dollar as the world reserve currency. This could be very significant for Americans. Dollars will quickly become worth much less if they are no longer desired around the world.
Suiting Up for a Post-Dollar World
By John Browne
The global financial crisis is playing out like a slow-moving, highly predicable stage play. In the current scene, Western governments are caught between the demands of entitled welfare beneficiaries and the anxiety of bondholders who fear they will be stuck with the bill. As the crisis reaches an apex, prime ministers and presidents are forced into a Sophie’s choice between social unrest and bankruptcy. But with the “Club Med” economies set to fall like dominoes, the US Treasury market is not yet acting the role we would have anticipated.
Our argument has always been that the US benefits from its reserve-currency status, allowing it to accumulate unsustainable debts for an unusually long period without the immediate repercussions of inflation or higher borrowing costs. But this false sense of security may be setting us up for a truly monumental crash.
Today Ron Paul received an award from Freshman congressmen for Best Legislation Introduced in the 111th Congress. This is to recognize his efforts to bring greater transparancy by Auditing the Fed. He definitely deserves to be recognized for his tireless work. Thank you Dr. Paul!!!!