The folks at Agora Financial who write the 5 Minute Forecast have never been ones to mince words. In today's Forecast (entitled China, Russia Flee the Dollar), they certainly didn't! Here's what they said:
Historic deficits and debt in the U.S. are only possible because the dollar has enjoyed reserve currency of the world status since the end of World War II.
When foreigners stop using dollars as a store of wealth and stop buying Treasuries (or, worse, sell them) it's game over. Interest rates rise, cost of debt service increases, interest as percent of the federal budget becomes unsustainable... yada, yada. We've been suggesting this for over a decade now.
Without reserve status, the U.S. is as screwed as any penny-ante, post-bubble eurozone economy seeking a bailout... like, say, Ireland.
Strong coffee, no doubt. Speaking of another strong commodity - take the strongest one - physical gold. Take the second strongest monetary metal - silver. I heard on CNBC today that right now may be the best time in recent memory to invest numismatic silver coins. Invest in yours today at Lear Capital !