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.