Dollar Begins Crash In Response To QE2 As Gold Scores New High
November 5, 2010: Kurt Nimmo / Prison Planet.com – November 5, 2010
Earlier this year, Lindsey Williams told Alex Jones the globalists would devalue the dollar and jack up the price of oil. Both are now happening.
On Thursday, in response to the Federal Reserve’s announcement that it plans to monetize the debt and increase the money supply, economists and market strategists warned that the sickly U.S. dollar is now at risk of crashing and consumers will soon be hammered with higher prices.
“Consumers should prepare for another turn of events like the spring of 2008, when oil prices soared to $147 a barrel and gas at the pump was more than $4 a gallon,” Axel Merk, chairman and chief investment officer of Merk Investments, of Portland, Maine, told CNBC.
Oil futures reached $87.22, the highest price in more than two years, Bloomberg reports this morning. Merk said the Fed’s plan for inflation will show up at the gas pump. “We’re not going to get wages to go up. We’ll get the price at the gas pump to go up instead,” he said.
The Fed’s Q2E plan is being roundly condemned. China, Germany and Brazil are warning that the plan to inject more than $600 billion of funny money created out of thin air into the economy will have disastrous consequences. It will send money flooding into their markets seeking higher returns and that will drive up exchange rates and hamper exports by making their goods more expensive.
China’s central bankers are not ebullient. “If the domestic policy is optimal policy for the United States alone, but at the same time it is not an optimal policy for the world, it may bring a lot of negative impact to the world. There is a spillover,” said Zhou Xiaochuan, governor of the People’s Bank of China.
Investors are scampering in search of shelter. “There’s no such thing anymore as a safe asset. Cash is no longer safe,” said Merk. “Do what central banks do, they diversify to baskets of currencies.” Gold, silver, and precious metals remain a strong diversification option.
On Friday, gold futures shot up higher and posted a new record, their second in a row and a day after the metal had its biggest one-day gain in nearly 20 months. Gold rallied to $1,383.10 an ounce on Thursday after the Federal Reserve announced its policy to attack the dollar and unleash a broadside on the world economy through its QE2.
Bernanke Lies Under Oath About Monetizing The Debt
The Tonka Report Editor’s Note: Brace yourselves for one helluva rough ride ahead, America! – SJH
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Written by Steven John Hibbs
November 5, 2010 at 12:27 pm
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