The Dollar Headed for a Meltdown

The Dollar Headed for a Meltdown Larry Edelson takes a closer look at the U.S. dollar and the reasons why it is headed for a meltdown. In this issue of Money and Markets, Mr. Edelson explains further why the rocky economy has affected the value of the dollar. Jupiter, Fla. (PRWEB) July 19, 2008 -- Larry Edelson takes a closer look at the U.S. dollar and the reasons why it is headed for a meltdown. Mr. Edelson explains further why the rocky economy has affected the value of the dollar. The U.S. dollar is headed for a meltdown. There is simply no way the dollar can hold its already devastated value when: The Fed is pumping out fiat money with no end. Real interest rates are negative and will likely remain that way for months, possibly years, to come. The Federal debt is approaching $10 trillion and contingent liabilities are soon headed over $60 trillion. The trade deficit continues to remain deeply in the red and is bound to get worse because of soaring energy prices. Main Street, USA and foreign investors are beginning to become aware of Washington's manipulation of economic stats like the CPI figure. And the Federal Reserve is accepting all sorts of paper from banks, mortgage companies, investment banks, and soon, even failing hedge funds, to try and keep the U.S. financial system solvent. The dollar used to be backed by gold. Currently the dollar is backed only by "the full faith and credit of the U.S." Edelson believes Washington has not only fiscally mismanaged our economy, but now the government is papering over the errors and speculation of people at the helm of companies like Fannie Mae and Freddie Mac and thousands of other banks and brokers. Those institutions' errors, whether criminal or not, are appearing in all the defaults and paper in the financial system, and the Federal Reserve is accepting it all as collateral for dollars. The Dow is already down 78% in a giant stealth bear market, and now, according to Edelson, the next phase has begun. This is where the decline becomes visible and fear begins to set in. Investors, both domestic and foreign, begin selling in droves, battering every rally attempt in the Dow, and ultimately pushing it down below 10,000 to 9,200, or perhaps even lower. All the while, because of the weakening U.S. dollar, inflation shoots higher and commodity prices and gold soar. Edelson also thinks the next huge collapse will happen in the U.S. bond markets. "I think the next huge collapse will happen in the U.S. bond markets. The Federal Reserve is now backing our dollars and by implication so is the U.S. Treasury, with all sorts of junk paper. And on top of it all, the Fed is printing fiat money like crazy, keeping real interest rates negative, and more. This is a disaster in the making for the U.S. bond markets. Soon, investors could dump U.S. Treasury bonds realizing that they are far from a safe investment. Bond prices would collapse and these investors would flock in droves to the only true safe form of preserving wealth: gold," Edelson states. To read this issue online, please visit: http://www.moneyandmarkets.com/Issues.aspx?Very-Frank-Talk-Plus-Investments-to-Consider-Now-1980 About Larry Edelson and Money and Markets With nearly three decades of experience in precious metals and natural resources markets, Larry Edelson has played a pivotal role in training Weiss Research staff and in guiding Weiss Research's customers to prudent investments in the sector. His Real Wealth Report, Gold Trader Hotline and Energy Options Alert provide a continuing education on natural resource investments, with recommendations aiming for both profit and risk management. His team of technical analysts helps enhance the timing of investment recommendations with the aim of continually improving the performance results for investors. Mr. Edelson is also a regular contributor to the daily e-letter, Money and Markets. Recognized as an expert in precious metals and natural resources, he is often called upon by the media for his investing views. Mr. Edelson has been featured on Bloomberg, Reuters, and CNBC as well as The New York Times, New York Sun, and Marketwatch.com Mr. Edelson holds a B.A. degree from Columbia University.