Jim Willie, editor of The Hat Trick Letter, makes a bold prediction: “My estimate is that the USDollar will eventually see a 50% to 60% devaluation in total over the next few years. That will cut US personal wealth in half. That will open the door to 25% to 30% price inflation suddenly. The process will cause grand shortages, civil disorder, and perhaps chaos. Violence will erupt at the gasoline stations and food supermarkets. The USEconomy will lose its credit line, and become a credit risk.” It’s a race to the bottom as nations try to prop up their exports by devaluing their currencies. This is a race the U.S. will not win. Already foreign nations are setting up agreements to bypass the dollar and settle trade accounts in gold and other non-dollar assets. When Iraq tried to bypass the dollar, we started a war. Now Iran is trying to do the same. But the U.S. cannot afford a war with Iran because it has the support of Russia and China. Naturally, U.S. politicians will try to spin stories about Iran’s nuclear programs. But it’s all political theater for the real issue: Iran doesn’t want to trade oil in dollars. I hope Jim Willie’s prediction doesn’t come true. But I suspect it will. survivaljoe.net/blog/a-bold-prediction-the-devaluation-of-the-dollar/
Posted on: Tue, 18 Jun 2013 22:02:05 +0000