When I talk to people about why I’m bailing out of the US Dollar, they usually ask why, since I live in the US. This is the reaction you will usually hear on Old Media as well, which parrots the party line from The Fed.
Well, noted investor Jim Rogers recently had this to say about Ben Bernanke’s comments to Congress along the same lines:
"He is a total fool,” Rogers said. "He said Americans
who buy only American goods are not affected if the value of the
U.S. dollar goes down. I was terrified. If you only buy American products and the dollar goes
down, the price of oil goes up, copper goes up, wheat goes up,”
he said. "That affects you. He doesn’t understand the economy
as far as I can see.’"
I usually end up launching into a long-winded explanation about commodity markets, the
global economy, oil competition from APAC, and the depegging of the
dollar. Rogers is much better at being succinct than I am.
For some reason our government is hell-bent on understating inflation, probably so they can keep lowering rates as demanded by our screaming, kicking, pouting, crack-addicted stock market. Reality says that inflation is far higher than they want to admit.
You know things are bad for the dollars in your wallet when supermodels demand anything other than dollars for payment and Jay-Z starts flashing Euros in rap videos. I’m sure this is not what was intended when Congress was given authorization to regulate our money supply.
