The Upcoming US Dollar Crash = Biggest Transfer of Wealth in History

The Upcoming US Dollar Crash = Biggest Transfer of Wealth in History

 

Yup, we all see it coming.  The Upcoming US Dollar Crash = Biggest Transfer of Wealth in History, guaranteed the Federal Reserve’s own “Helicopter Ben” as he continues his policy of printing money for his banker friends by the trillions of dollars per quarter, as if from a volcano, into a confetti parade of debt monetization.  Ouch, what a headache this party is going to give us when hyperinflation sets in. 

 

 

As in the last 100-years, even more in the near future as the great transfer of wealth continues.  In the big picture, this is all part of a 100-year trend isn’t it?  Since the creation of the Federal Reserve System, the dollar has already lost over 96% of its value.  Who continues to benefit from that?

 

If you put your ear to the sky and listen very carefully, you will hear a giant sucking sound.  That is the sound of wealth transferring away from 90% of us who earn and save in dollar denominated paper assets.  The big winners of this wealth vacuum are the 1% who facilitate newly printed money into depressed, crashed hard assets like forests, factories, real estate, etc…

 

Rough estimate on how this crash will  play out - The 1% win big / 90% lose big / 9% remaining stay about the same.  A glance at bonuses of bankers illustrates this fact quite clearly, and by the way, isn’t it their fault that we are in this mess?  But nevermind…

 

 “The world's most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.” – Taken from Matt Taibbi’s seismic Rolling Stone piece on Goldman Sachs.

 

 

…Even the mainstream news on Drudgereport.com right now admits that the worst is yet to come…

 

·       KRUGMAN: 'We are now, I fear, in the early stages of a third depression'...

·       SCARY OBAMA: 'VERY DIFFICULT CHOICES AHEAD' ON DEFICITS...

·       Says he's serious...

·       Prepare for 'monster' money-printing by Fed...

 

Charts of the dollar clearly show what looks to be a peaking top, poised for another drop…

 

For example, dollar index last 2 years…

 

 

 

Dollar index last 40 years indicates growing weakness as a world currency compared to other currencies in the index basket. (The dollar index is of course a comparison of the dollar to other failing fiat currencies, all devaluing over time towards that magic number - “0”).

 

 

 

 

 

Dow expressed in terms of gold indicates that we are about half way through the downward correction, which is really just a natural process of cleansing of the historic never before seen levels of debt in public, private and corporate hands. 

 

We have much-much more to go before the historical bottom when the value of the Dow = Gold.

 

 

 

 

 

 

Before we are done with this crash, the DOW will equal Gold!

 

What?

 

I said, historically speaking, before we are done with this crash, the DOW will equal Gold!

 

 

Will the DOW and Gold  meet at 1000?

 

Will they meet at 20,000?

 

Depends upon how much printing the central bank does.  I would guess closer to the 20,000 number.  Imagine a 20,000 dollar gold coin and the DOW sitting at 20,000.  What would the price of milk be at that time, about 20 dollars?  It always happens like that and never does it not happen like that.  We have a 100% guarantee that fiat currency always goes to zero over time.  The only question is the time it takes to get from here to there.

 

Gold is good, but what about the poor man’s gold?  What about the big picture for silver?  Good questions.  Price of silver adjusted for inflation for many hundreds of years going back shows that a return towards the historical norm can expected.  Downward pressures on precious metals are backing off.

 

 

 

 

You can’t go wrong if you own real money, 6000 year storage of wealth in precious metals.

 

If you still feel uncertain about shifting paper denominated wealth into precious metals, consider this – In all of world history there have been 10,000 fiat currencies (not backed by any asset).  And of all of those, none have held value over time.  This is a zero to 10,000 gamble with losers holding paper and winners holding precious metals.

 

All of the arrows are pointing in the same direction à Physical Precious Metals are already showing themselves a winning choice, not yet half finished booming against most paper out there, according to core driving medium term and long term indicators.

 

The case couldn’t be clearer for what is destined to boom and what is doomed to bust.  Place your bets wisely.

 

Cheers,

Tate Ulsaker