Should investors now consider a move to exchange their dollars for gold?

“Suddenly, everyone wants dollars.  This is in sharp contrast to a year ago, when we were told that above all, we must get out of dollars and into any other currency.  The chart below shows the sudden recent surge in the Dollar Index, and it’s interesting that over the last few days investors are swapping their treasured dollars for gold.  What’s the meaning of this — are their doubts about the stability of the dollar?  Currently, dollars are flooding the world, and this suggests that there are just too many of these Federal Reserve Notes being produced.  When the dollar’s seriously in trouble, I think we’ll see it in an important decline in the Treasury bonds.  Sophisticated bond holders are not going to hold billions in US bonds which are denominated in suspicious currency.  Keep your eye on the Treasuries.  Foreign central banks are holding a huge hoard of US Treasuries, and if suspicion grows about the sustainability of the dollar, they’ll be selling their dollars.”