THE DEMISE OF THE DOLLAR – THE LOSS OF “RESERVE CURRENCY” STATUS IS NOW IN MOTION. IF YOU ARE NOT POSITIONED TO CUSHION THE ONRUSHING INFLATION, YOU WILL BE SWEAPT ASIDE!

Wednesday, March 28, 2012
By Paul Martin

MilesFranklin.com
3-28-2012

Under the category of “Extremely Important,” I have placed the following TWO releases from Jim Sinclair – front and center in today’s Daily.

THE DEMISE OF THE DOLLAR – THE LOSS OF “RESERVE CURRENCY” STATUS IS NOW IN MOTION. IF YOU ARE NOT POSITIONED TO CUSHION THE ONRUSHING INFLATION, YOU WILL BE SWEAPT ASIDE!

Sinclair has sounded the warning siren on the two events that will define the gold market for the next several years: QE to infinity, as the Fed will continue to execute its purchases of US Treasuries, and misguided use of the SWIFT system in a form of “economic warfare” leading to the US dollar’s loss of prominence as the world’s Reserve Currency. This will lead to the dollar’s demise and it will first test 72.0 on the USDX and then drop below the all-important support level on the way to Hell. The clock is now ticking. The time available to you to switch out of the dollar and into the safety of precious metals is waning.

If you think for one minute that I am pleased that these events insure the future success of Miles Franklin and the Schectman family, you couldn’t be more wrong. Granted, as the price of gold begins to soar above $2,000, later this year, our business will explode and my portfolio (and Andy’s) will rapidly rise in value; but there will be consequences!

The inflation that will accompany the Fed’s “QE to Infinity,” will speed up the dollar’s demise and will compromise everyone’s standard of living. What good is wealth, if you are afraid to spend your money freely, are leery of going out to eat at your favorite restaurant, browse at the shopping mall, spend a Saturday night at the movie theatre or at a ball game? What good is your wealth if you worry when your wife wears her jewelry out in public, or if you are nervous to drive your expensive car to the grocery store? Can you spell ENVY, or ANGER? Just how do you think the majority of the population, that will be crushed by rising prices and unable to make ends meet in the “post-dollar-reserve-currency-era,” will react to those of us that had the foresight to side-step the loss of the purchasing power of the dollar by moving our capital into gold and silver? There will be no joy in smugly telling your friends (who refused to heed your warnings) “I told you so.” Gold (and silver) could easily become an object of anger and envy, since it will represent the financial security that the masses foolishly refused to own. For those of you who do own gold and silver, do not advertise it, be private about it and perhaps most importantly, store most of it offshore. (We have the best storage program available in Montreal, insured by Lloyds of London.)

Look, I happen to live in a very nice area north of Miami Beach, where there is so much wealth that it is hard to comprehend, unless you live here, but within a couple of miles to the north or west, there are literally millions of people who are even now, barely hanging on to make ends meet. Miami, like many of the glamor Sun Belt cities, is a city of extremes. Too much wealth on the one side and too much poverty on the other. This is potentially a dangerous mixture. There comes a point when the “haves” will be in the cross hairs of the “have-nots.” Do you think I am over-reacting? Think it through and see if you can come up with a more logical conclusion. What would YOU do, if you had to choose between buying food, fuel, rent and health insurance? These are the hard choices that a growing number of Americans will have to make. What would you do if you were forced to sit by and watch, as your children went hungry, knowing that there was no way out? How would you feel about your neighbors who were still able to live the high life, when you were losing everything? Would you want what they had? Would you resort to taking it? Would you be a “good Christian,” (or Jew or Muslim) and suffer in silence?

I want you to think beyond the statements from Jim Sinclair (below) and think about what will life be like for Americans, after the demise of the US dollar? And I want you to ask yourself what will happen “if” Jim Sinclair, Bill Holter, Gerald Celente, John Williams and Bob Chapman are right, and our future is already carved in stone – a done deal!

The Rest…HERE

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