“The Coming Devaluation of the Dollar Will be Sprung on Us Without Warning”

“In the years leading up to mid-2007 keen observers noted dangerous leverage in the US debt markets and some predicted that the bubble would pop. Predictions like this were contrarian while the market was rising, and they were ridiculed. But then when the bubble did pop, those same contrarians became nearly household names as network TV invited them on to explain their predictions.”

So begins a lengthy and informative article by blogger FOFOA, in which he claims that the coming devaluation of the dollar will be sprung on us without warning. If you have time, I recommend you read it (here is the link)

Your editor is in partial agreement with FOFOA. Indeed, I would say the devaluation of the dollar is already well underway. Unfortunately, the vast majority of people are currently living in a world of illusion… just this week, against all odds, the stock market rose again. When people see a rise in the nominal value of their investments, they believe they are making money. But they are wrong. Few take in that the cost of living is rising disproportionately higher… so they are actually losing. This is the fundamental strategy behind what I call the stealth devaluation of the dollar. The purchasing power of the dollar has fallen drastically since the Second World War, with a notable increase in the velocity of the fall in the last couple of years.

Another informed and respected commentator on the collapse of the dollar is John Rubino, who recently interviewed yours truly for an article on offshore banking and asset protection. In recent comments he refers to some news passed on by veteran newsletter writers Harry Schultz and Bob Chapman, that verges on what I would call a conspiracy theory…. or does it? You decide! The story goes like this:

“Some US embassies worldwide are being advised to purchase massive amounts of local currencies; enough to last them a year. Some embassies are being sent enormous amounts of US cash to purchase currencies from those govts, quietly. But not £’s. Inside the State Dept there is a sense of sadness & foreboding that ‘something’ is about to happen, unknown re a date-just that within 180 days, but could be 120-150 days.”

Bob quotes another source that “Panasonic has told their people to be back in Japan by Sept 09.”

Harry Schultz’s remarkable take on the situation:

“My HSL suspicion is that the elite plan another FDR style “bank holiday” of indefinite length, perhaps very soon, to let the insiders sort-out the bank mess which is getting more out of their control every day. Insiders want/need to impose new bank rules. Widespread nationalization could result, already under way. It could also lead to a formal US$ devaluation, as FDR did by revaluing gold (& then confiscating it). But devalue against what? The euro? Doubtful. Gold? Maybe. Or vs. the IMF basket of currencies (which seems more likely)-& much in the news recently.

Any kind of bank holiday will push the US$ lower, which may be a bonus benefit to their ongoing scenario of letting the $ fall. Such a fall would get the devaluation they want without having to declare it. In sum, the insiders want more bank & system control, fewer banks & a lower US$. A bank holiday would suit all their needs.”

So there is the question. Can we expect a sudden dollar devaluation, complete with suspension of markets and a so-called ‘bank holiday’? Or will we see the stealth devaluation of the dollar continue to accelerate?

My bet is on the latter. Why would politicians and those in power risk the wrath of the people by devaluing the dollar so explicitly from one day to the next, when they have successfully got away so long with devaluing the dollar on the quiet with few people noticing. But of course I may be wrong, and the situation may be even more out of control than I think.

Either way, I’m not sitting waiting for it to happen, and you shouldn’t either! If you are properly prepared, such a collapse would be a huge profit opportunity. But you would not be able to rely on usual market mechanisms… we have to consider that the stock markets and financial system might be completely suspended. It happened in the aftermath of 9/11, but it hasn’t yet happened during this global financial crisis. Never say never!

My advice is that markets are a nice convenient way of speculating play money for short term gains, but every serious investor needs to keep wealth outside the financial system too. That may be in your own business (if it is resilient) or it may be in real estate (people will always need places to live) or it may be by stashing gold bullion in an offshore safe deposit box.

The Q Wealth Report is here to advise you on all these options and more. If you haven’t yet read our free five-day e-mail course The Secrets of the Super Rich, I would urge you to sign up for it now. As I said, it is absolutely free and without obligation. I think you will find it an eye-opener!

4 thoughts on ““The Coming Devaluation of the Dollar Will be Sprung on Us Without Warning”

  1. Big miss on your time line. I still think you’re spot on with the devaluation but putting a time line on this train wreck is a hair puller. Today is 2/26/10 and unless the wheels fall off I don’t expect anything before the 2010 mid-term election. After that anything is possible.

  2. today 3/22/2010, I am just waitting for all this B/S to come out into the light. I can't belive how dumb ( and yes I am american) american have become, a bunch of Lambs…Blind too.. they have no ideal as to what been happening to their dollars, how they have been rip off, the real value of your one dollar is now .05 cents (1913 to 2010) thanks to the federal reserve. Thats .05 cents people, how much longer are you going to sleep. You need to buy something and get rid of it ASAP ! Buy can foods, a gun, gold or silver…ammo… or when the S__t hits the fan, you have "Nothing" but wall paper dollars… Don't you remember how to protect yourself, or your family– it not, I am sure the goverment will,(NOT)Wake up "Real AMERICANS"… This is OUR HOME!

  3. I have been predicting a comming crash for 40 years. During the Carter administration, we were almost there (70% high-end tax rate etc.). when Ronald Reagon was president, the economy recoverred (Boone Pickens, Bill Gates and others made their billions). Then came Bush1,Clinton, Bush2 and the economy bagain to slide. Now we have Obama. I looks like my prediction are about to come to pass.

  4. today 12/21/2011:

    If the current congress is any indication, we Americans are in deep $%^# now. Obama just signed the NDA Act which shreds our constitutional rights to Habeus Corpus and Posse Commitatus (a United States federal law prohibiting members of the military from exercising powers that maintain "law and order" on non-federal property).

    Our sheeple congress didn't give 2 brain fartz about what this really means — they are too busy fighting over the SS extension, which is just another smoke-screen for the NDAA and the coming SOPA act regulating the internet for the benefit of the 1%.

    While we sleep, the feds are activating the some 70+ detention ("fusion") centers that Bush built. These centers look like max prisons yet have play-grounds for our babies, and Haliburton is filling the pantries with food for about 450,000 Americans (72 official federal centers x 6000 ppl each). Plus, we have many offshore holding areas that can be used. When things go badly, the government has a huge inventory of 4-person coffins available at these centers.

    Please check this out for yourself if you've been dozing. Our dollar has shrunk to almost nothing compared to 50 years ago, and I opine that it will become almost worthless as global banking crisis ratchet upwards, especially with outsider technocrats now running Greece, Italy and Spain. Our own government is an oligarchy, with the blessing of the Supreme Court's decision in "Citizens United."

    I am willing to fight back, but with whom?? The 99% are still sleeping despite OWS efforts, and the republican debates are both farcical and terrifying. My Senator John McCain ran for president last time, and he was THE sponsor of the NDAA in the Senate! There are few differences left between our candidates or political parties, leaving elections as another ultimate joke on our country, along with Social Security, the IMF and the constitution.

    If this is the "hope and change" we were promised, then I am sending myself offshore with the help of Peter and his colleagues, and strongly suggest you do so too.

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