My Blog
John Williams - Dollar Crisis-of-Confidence & Gold
John Williams is issuing warnings about the action in the currency and gold markets. He examines likely responses by the Federal Reserve and the federal government which will be efforts in his mind to forestall a systemic collapse. The following are his must read thoughts on where we are...
September 27, 2010
John Williams:
Gold and Dollar Signal Problems. Beyond the games being played with semantics by economist- politicians, the continued rally in precious metal prices and renewed weakness in the U.S. dollar appear to be signaling growing global concern of the implications of an actual re-intensification of the downturn in U.S. economic activity.
Particularly destabilizing to the markets are fears of the likely responses of the Federal Reserve and the federal government to forestall systemic collapse through significant debasement of the U.S. dollar.
The current circumstances are of a nature that could trigger further central bank activity — overt or covert — in terms of slamming the price of gold or attempting to prop the value of the U.S. dollar with short-lived actions ranging from direct intervention in the markets to jawboning.
As dollar-defensive efforts get more serious, such will signal an intensification of dollar-dumping desires by holders of the U.S. currency, and the rapid nearing of the ultimate crisis-of-confidence in the dollar. The broad outlook for the economy, for the financial markets and for systemic stability is unchanged.
John is one of many well respected market veterans who is warning of hyperinflation. He also recommends ownership of physical gold and silver as protection against such a collapse.
Eric King
