Down the Road

 

Trader Scott’s Market Blog

 

Here is a well thought out comment from a reader who shares many concerns/questions that I hear from the listeners all of the time.

 

My own take on the US Dollar is that is doomed. I do not deal in currencies and it not a currency that I personally would be investing in.

I do believe that the upcoming summit on September 30th will signal a new positioning of the SDR and the US Dollar will take a secondary role whereby there is a likelihood that the petro-dollar will no longer become the de-facto means of exchange as the world reserve currency as it has been since Nixon took America and the world off the gold standard. By this time gold will be in an unstoppable bull market heading much higher from its current levels. I also foresee US interest rates in negative territory.

Central Banks around the world (aka Goldman Sacs) have truly lost their way and a past dormant main stream will suddenly wake up to how they have destroyed the ordinary folk’s savings and their means of additional income.

This scenario is beginning to break loose thanks to social media and will be gathering memento each and every month from here-on in.

The new president of the US, whoever that maybe must get real with the public at large and let all know how dire things are and what changes must be made in getting back to reality.

By the way, I am a Brit by birth living in Ireland so I will not be eligible to vote in America, however, God help America if they vote for a socialist candidate as is Hilary Clinton, the debt created by monetary extremism will go from madness to lunacy and more of the same with QE4 and negative rates.This will lead to a declining dollar and rampant inflation throughout her reign. ‘You can please some of the people some of the time but not all of the people all of the time’. Social unrest will become common place.

That is my vision of the future so I am all-in on precious metals, as I am not worried about income and totally focused on capital gains.

I would welcome your comments

Kind Regards

 

My answer:

All of you know my views on gold. As to the US$, I recently said that I do expect short term technical weakness into the Commander in Chief Trump hysteria, but I will likely be a buyer this Fall.

For several reasons, I still do not believe that we have yet seen THE high in the $, but I’m not buying currently.
And I do believe that the “experiment” in negative rates is generally over and the central bank clowns are soon to be introducing their new parlor trick – helicopter “money”.
Lastly, I believe that it’s going to be a disaster economically no matter. Neither Trump nor Clinton will alter the path that we’re on. They’ll both pile on new debt. But we reached the zenith of the increase in total net debt having the effect of increasing net growth. Now the central banks have to increase debt at an accelerated rate just to keep growth from outright declining. It’s ugly. There’s zero anyone can do to “fix” things.

 



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'Trader Scott – Down the Road – August 2, 2016' have 3 comments

  1. August 2, 2016 @ 8:03 pm Tom

    I live in one of those countries which use the USD. I was looking at farmland and some opportunities in timber and fruit trees. Do you think these would be good alternatives to keeping money in USD. Is the US already in recession? Is a Civil War coming?

    Reply

    • August 4, 2016 @ 1:30 pm Scott

      Tom. Regardless of the USD, if you know a lot about and have the experience in any endeavor you will succeed. So to farmland, etc. as a blanket statement, I have no idea if those are good alternatives. That completely depends on the individual situation.
      As to USD itself, while very long term, I’m very bearish, currently I have a very large long position in Dollars. Also in PMs.
      When did we exit the last recession? Global wars, civil wars, all kinds of strife are here and will accelerate. It’s a mess.

      Reply

  2. August 2, 2016 @ 8:49 pm Stu the Canuck

    The following are tentative.
    Expect a peak in US$ in around 2019, gold peak in 2020.
    World is awash in US$ debt – trillions of dollars. A sudden collapse would put the world in the dark ages. There is no where else to put money and real estate will be devastated by by huge tax increases to support the bubble in public servants who have the real power. The new dictator class.
    More currencies will start to fail soon moving money into the US$ and solid assets – could include DOW as it is priced in US$. Sort of like the 1920’s.
    Agriculture failures would be the final touch to a significant decline in world population and dirty thirties scenario.
    Cloud cover increasing is a symptom of global cooling.
    Forget about the main stream media, a tool Joseph Goebbels would be very impressed with.
    Mid 2030’s should be the start of real recovery and the bottom in real estate. System flush necessary.

    Reply


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