The Begining of the End for the US Dollar

March 19th, 2009

Mark your calendars. The below statement is enough to scare the crap out of me if it weren't for the fact we were given a warning it might happen by Ben Bernanke himself a few months ago. I have been waiting for this day as it signals the demise of the USD as a world reserve currency. Inevitably, it will guarantee that it's value is less than toilet paper--yet not even as useful.

This will be likely the last few minutes we see the gold price stay under $1000 an ounce. And, considering we're so close to $1K right now, we probably won't stay anywhere near this gold price for long.

Inflation is now guaranteed at a rate of $1000 per US citizen. We'll see prices go up and buying power go down.
In these circumstances, the Federal Reserve will employ all available tools to promote economic recovery and to preserve price stability. The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and anticipates that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period. To provide greater support to mortgage lending and housing markets, the Committee decided today to increase the size of the Federal Reserve's balance sheet further by purchasing up to an additional $750 billion of agency mortgage-backed securities, bringing its total purchases of these securities to up to $1.25 trillion this year, and to increase its purchases of agency debt this year by up to $100 billion to a total of up to $200 billion. Moreover, to help improve conditions in private credit markets, the Committee decided to purchase up to $300 billion of longer-term Treasury securities over the next six months.
Taken from yesterday's Federal Reserve press release.

Honestly now, do I need to say it again?

Buy Gold Now!

Filed in Economics