Three days a ago we recognized Pearl Harbor Day. Tomorrow (December 11th) may be remembered as another “day that will live in infamy”–the day that the Fed torpedoed the US Dollar. You see, the Federal Reserve’s Board of Governors is meeting again, and as I mentioned in the blog last week, it seems very likely that the Fed will cut interest rates again. If it is a 50 basis point (or larger) cut, then it could kick off another huge round of global Dollar-dumping, and we might see the USD Index plunge into the 60 range. Coincidentally, there will be another Fed conclave in Jackson Hole, Wyoming, on Wednesday. How convenient. They can formulate their desperation moves in reaction to the dollar meltdown that they started.
Let’s face it: It may not be this this year, or even this decade, but in the long run, like all other un-backed currencies, the US Dollar is doomed. Get out of dollar-nominated investments and diversify into tangibles. Of more immediate concern: If there are any goods on your retreat logistics lists that are made in Europe, then I recommend that you move them up in priority. Odds are that many European-manufactured items such as Kahles, Schmidt & Bender, or Swarovski scopes will be unaffordable for US buyers in less than a year.