Will the dollar collapse?
*Barron's, by Lauren R. Rublin, January 10, 2009:
"It's hard to predict the market when you don't know what the Fed
will do. The Fed has tripled the size of its balance sheet and is
plowing ground we have never seen before. Here are my facsimiles of
deutsche marks from Weimar Germany [holds up sheaf of papers]. They
collapsed in value when Germany started printing money after World War
I. It happened very quickly and it can happen again.
The Germans were successful at reflating. But they weren't successful
in saving their economy. [Federal Reserve Chairman Ben] Bernanke is on
record saying, 'I will not make the mistakes of the 1930s. I will not
make the mistakes of Japan in the 1990s.' He is pushing the limit right
now.
Gabelli: So you're saying he's going to make the mistake of the Weimar
Republic?
Hickey: There is a possibility of that. Every month that there is a
horrible employment, report the government prints more money.
Gabelli: It took Weimar Germany a brief time.
Faber: The worse the economy, the more they will print. It is like in
Zimbabwe now, and Latin America in the 1980s. They had large deficits
and printed money, and in local currency everything went up. But the
currency collapsed."
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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