Thursday, January 9, 2014

6 Reasons why the FED wants to devalue the dollar

This article is one of the better ones I have seen on this topic.

It explains in some detail what Rickards has been saying for years now. The policies  being used by the FED are designed to intentionally devalue the dollar. The trick is that they want this to be an orderly process. They want to chip away at the dollar at a controlled rate of speed. This article explains why they benefit short term from doing so.

Rickards believes this process will eventually pick up speed and the FED/Treasury will lose the ability to manage the process. When that day arrives is when we can expect  a major overhaul to the world monetary system where the US dollar is replaced as world reserve currency.

If you connect the dots, you can see where China and the BRIC nations are preparing now for the change. China is importing massive amounts of gold and officially encouraging its citizens to build up a reserve of gold in each family. The intent is clearly to eventually take the legs out from under the petro dollar and then replace it with a new gold backed yuan. Alternatively, the IMF may try and convince China to allow them to create a new global currency that is partially gold backed.

But the point is that it is important to see the megatrends ahead of time and prepare for the changes coming.

No comments:

Post a Comment