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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.
Street, USA and foreign investors are beginning to become aware of
Washington's manipulation of economic stats like the CPI figure.
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.
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
Mr. Edelson holds a B.A. degree from Columbia University.