Bad Dog

The End of Gold, Part Three

How will it accomplish this 50% devaluation?


On Feb 11 12:46 PM lance sjogren wrote:

> I don't subscribe to the hyperinflation scenario.
>
> I believe the US will devalue the dollar about 50% over the next
> 4 years, and then work extremely hard to strengthen the dollar so
> that it doesn't fall further.
>
> A 50% devaluation of the dollar will wring out a lot of excesses
> in the system. The mountain of debt of different forms (govt, consumer)
> that the US currently has is far too big to pay off. There are two
> alternatives, one is for the US simply to default, the other is to
> devalue the dollar to the point where our debt burden becomes manageable.
> The latter is the obvious course. That is the cours the treasury
> and Fed are embarked on even if they probably would never say so
> and may not even be aware that is what they are doing.
>
> Gold should do well over the next 3-5 years. Once the dollar stabilizes
> at its lower level then gold will probably flatten out or decline
> slightly.