[quote=svelte][quote=partypup]
If the Fed does not intend to raise interest rates – and let’s face it, they can’t – then we really are witnessing the end of the buck – first as a reserve currency (which has technically already happened over the last 2 months as banks have radically shifted their allocation of reserves), then as a currency, period. I suspect the first milestone will officially be crossed at the end of the month. By the end of next year, I think we will be hearing Congress and Obama bleat about developing a new currency/alternative to the dollar.[/quote]
Wow, now you’ve gone on record: end of 2010 we get a new currency if the Fed does not raise interest rates.
I admire your willingness to go on record with something so radical. I don’t think I agree with you, but I certainly respect your convictions.
I’m still kicking my arse for not heeding your warning in Sept 2008 and not moving my 401K monies, I would be so much happier right now had I pulled out and jumped back in this summer. Argh.[/quote]
Not quite, Svelte. I think by the end of 2010 we will hear the pols start to agonize about what to do with the dollar once everyone realizes over the course of 2010 that the dog has died and can’t be resurrected. How long it actually takes them to DO something about the situation is another story entirely. This is precisely why I advocate accumulating gold (and especially silver). Because bewteen the time that people realize their currency is f****d and the time we actually develop a viable alternative, we will still need to transact business. Barter will be key, but I also think metals will find a growing role as interim currency.
