[peaceandlove]

Pondering Our Collapse While We Watch Others Fall

Posted: March 10, 2010
By: Bob Chapman

The current dollar rally wont endure, questions for the future of the Euro, No collapse of currency overnight, but we see it coming, record low interest rates drive bond purchases, Fed will continue to feed the economy, the threat is deflationary depression, China continues to dump dollars, US in a box, Fannie and Freddie bondholders should not hold their breath, unemployed are also exhausted...

Every important factor we see is working against the dollar and we believe that trend is irreversible. That means the present dollar rally probably cannot endure and it could well be the time to short the USDX.

Excerpt:

We see a general contraction of credit worldwide and unless reversed the inevitable will unfold. What is even more dangerous than in the 1930s is the enormous leverage that exists today. When this comes down it will be with a thundering roar. That is because few have the ability to pay. It is totally inconceivable that the US government can pay back its liabilities. That means that other nations that hold 60-1/2% of their foreign exchange in US dollars will take tremendous losses from which they won’t easily recover. China and Japan, along with Middle East oil producers, will take unbelievable losses. All creditors will be big losers.

Continues: http://www.theinternationalforecaste...ch_Others_Fall