Prediction: US Dollar is No Longer a Currency within Five Years....Welcome to the Age of the AMERO!
I know Paul & I have been discussing the issue of the North American Union in depth for over a year now. However, i am not sure if we have ever discussed it on this forum. This is a very real issue that looks like its development has recently begun to accelerate. I now fully believe that rates will go to zero & that the dollar will be replaced with a currency very similar to the Euro called the Amero & will serve as the currency for Mexico, Canada, & the US. Check youtube & hear Lou Dobbs talk about how crazy this is...below i have included a little more heavy handed primer. Enjoy & take on as much debt as possible.
posted by Not Sure if Al Gore or Global Warming is a Bigger Joke at
3:00 AM
3 Comments:
I dont get it. Interest rates go to zero but gold goes to $2000. Please reconcile for me.
What do you mean you don't get it. The fed will keep trying to inject liquidity into the system but the problem is that artificially injected liquidity never goes into deflating assets but rather moves into inflating assets. The move to zero % short rates will destroy the dollar completely, and since the historical inverse relationship between gold & the dollar continues to hold I would say gold will go to much higher levels than than $2000.
Look $2000 gold is the bear story...if rates go to zero gold will likely spike somewhere above $8k & then once we move off the dollar onto the Amero gold will reprice.
But, look on a current dollar basis the peak price of gold in 1980 was $4700...I think we will likely go way higher b/c that price was ended by 18% + short rates not zero % rates.
Understand?
If you are talking rates make sure you specify short rates vs. long rates. It is one thing to say Fed Funds rates are going to zero because of fed action it is another to say 10-year is going to zero. I generally dont make the distinction because I assume a relatively normally sloped yield curve. Your scenario probably necessitates an abnormally steep yield curve, thus the distinction.
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