It is easy to convince people of all the problems with the U.S. economy. We do have over $17.7 Trillion of national debt and a Federal Reserve with a suspect balance sheet compared to its pre-2008 financial crisis balance sheet. We also have budget deficits for the next decade to deal with and unfunded liabilities in the 10’s of trillions. Why such a strong greenback despite all these not so small looming issues?
Where’s the dollar crash gold bulls? James Turk and John Rubio wrote a book in in 2008. The Collapse of the Dollar and How to Profit from It. Peter Schiff is on the record over the years talking about a dollar crash as well as this 2010 video shows. But why is the dollar doing so well?
It’s an illusion and a misunderstanding of what a dollar actually represents. I have written about this including an article written January 24, 2012 Euro and Yen Make Up 71.2% Of Dollar Index Which Is Why I Am Dollar Bullish. I pointed out problems with the banks in Europe at the time and that if 71.2% of the Dollar Index is Euro and Yen based that by default, if they go down, the dollar goes up. Currencies typically don’t fall or rise over night, and they move up and down within a larger trend, but I have maintained my stance of being dollar bullish for quite some time and saying this could have an effect on the price of gold.
Continue reading at Seeking Alpha as this is an article I exclusively wrote for them: The Dollar Has Not Crashed Like Gold Bulls Thought It Would
Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
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