The Dollar Index Collapse - End of a Currency

I know that many people will look at this title and perhaps laugh. I am here to say otherwise.

I reference the Dollar Index because this is a general measure of the strength of the US dollar in comparison to a basket of foreign currencies (the euro (EUR), Japanese yen (JPY), Pound sterling (GBP), Canadian dollar (CAD), Swedish krona (SEK) and Swiss franc (CHF)). A index value that is high means a dollar that is strong and is seen to be anti-inflationary. This is a number around 85-110, low 80's is a decent number and below 80 is generally the sign of a weaker dollar. However, what is a real sign is the drop of the currency over a couple months. In other words, how fast the currency drops.

Now the dollar is the reserve currency of the world, which lends it strength on the global market. Now, the dollar had a value of 87.8 on 11/19/2008, and it fell to 85.5 on 12/10/2008. This is a fine decline as it remains fairly high and has only dropped 2.3 points. As of today, 12/18/2008, the dollar index is at 79.6. That is a drop of 5.9 points in just over a week! You can see this for yourself here. This is a terror for the US dollar.

This is a sharp and rapid decline for a international currency. This is what I see as the end of the US dollar as the reserve currency of the global market and the emergence of a new currency of perhaps set of currencies, such as the Swiss franc, British pound, Swedish krona and the Japanese yen. However, this is not a factor for us, the American citizens, because America has gone the way of Argentina in 1975-1990, the stagflation period. From my observations, the money supply of the US has expanded, or has been inflated, to far to be pulled back at the beginning the onset of sharply rising prices. We, as Americans, are going to witness the inflationary boom and the hyperinflationary bust of the US economy, and we shall feel the destruction of printed money.

This is the end of a currency, the end of the dollar and overall the end of American imposition on the globe. Americans will not be able to bribe countries with foreign aid, use force with a military that is not funded to move about, and the international community will have a higher standard of living, especially in the emerging and producing markets of China, Japan, India, and other industrialized nations such as Russia. The United States will cease, so to speak, to be a global influence on the world.

Now, the dollar may strengthen, as in staying fairly level on the dollar index, for the next couple months, perhaps till February of next year; however, this temporary hold will not last past February of next year. The dollar by this time will begin its sharp descent and it could loose up to another 25-55 points! We, as Americans, will witness times perhaps worse than the Great Depression. I have currently prepared my pens and paper so that I may write about this event.

I salute you, my fellow Americans, and I hope to see you in the coming destruction. Be prepared to put the country back together and produce as much as possible that is of high quality to sell to the world. I warn again, as I have for the past year, GET OUT OF THE DOLLAR!

Happy Solstice!