Blog

February 15, 2010 – As the debt crisis in Greece continued to unfold last week, the US dollar and US government debt instruments were being touted as a “safe haven” alternative to the euro as well as European sovereign debt.  These calls were made even though Moody’s sounded the alarm the week before by warningRead more

January 9, 2010 – The total quantity of US dollars in circulation has declined over the past year.  As of December 31, 2009, M3 is $14.193 trillion compared to $14.317 trillion one year ago, based on preliminary estimates prepared by shadowstats.com. The nosedive in M3 annual growth rates from its peak of 17.4% in March 2008Read more

The government spends more money than it is receiving in taxes, which forces it to borrow. As these deficits grow, they eventually exceed the market’s capacity or willingness to lend money to the government.

December 19, 2009 – Socialism has come to mean many different things to many people, but regardless how it is defined, in the months immediately ahead it will be put to a rigorous test.  The test will be visible to everyone as countries around the globe run out of money and confront overwhelming debts thatRead more

While the debate continues whether inflation or deflation will be the dollar’s eventual fate, the Federal Reserve is pursuing a pernicious policy that is insidiously debasing the dollar. This policy has generally been met with indifference, if it has even been noticed at all.

This past Tuesday the Dollar Index made a closing low of 78.40, which was a whopping -6.6% drop from our short sale price in only twenty trading days. The dollar literally collapsed, so it is not surprising that the dollar finally bounced somewhat toward the end of the week.

Do you still doubt that the US is on the road to hyperinflation? Then consider this news item, released late Friday afternoon on a 3-day weekend in the hope that few will notice. “Reuters – U.S. budget gap soars in first half of fiscal 2009 – The United States posted a record $956.8 billion budgetRead more

March 23, 2009 – The page-1 article in the last letter was “On the Cusp of Hyperinflation”.  If you doubted that the dollar was headed for hyperinflation after reading the last letter, all doubts should have been dispelled after the Fed’s announcement on Wednesday that it would buy $1.2 trillion of government bonds and agencyRead more