The dollar is doomed by the fact that there has been too much Keynesian style spending coming out of the United States Congress. You cannot spend your way out of every crisis and when you attempt to, such a concept truly can weaken your currency.
The dollar is also doomed because people are starting to wake up to the reality that we need a source of revenue that is backed by more than government fiat. Richard Nixon was wrong to take us off the gold standard, but he did so as a tool to help the government control the money supply.
This is not just a ploy by conservative activists who want to get less power in the hands of the Federal Reserve. There are people on the other side of the aisle who are beginning to raise concerns about the strength of the dollar and whether the Federal Reserve has too much control over the money supply of our nation. Alan Grayson, a Democrat from Florida has begun to raise the argument of whether the Federal Reserve simply has too much control over the federal government and our economy. Because of these worries Grayson has begun to question whether the idea of backing our currency with gold again may not be a bad idea — especially if you analyze the strong history of gold.
People should know the fact that we are mortgaging our future by maintaining a weak currency that is dependent upon the investment of countries who do not have our best interests in heart as they still buy our treasury bonds. We are not self sufficient anymore as a nation because of this reckless spending. If people continue to see the destruction of the private sector with the assumed nationalization of one of the biggest parts of the economy, that being health care coming down the pike. You can guess that such a move will not instill confidence in the dollar amongst private investors who want to see America flourish again.
Until we end this reckless spending there is no way the dollar would ever be able to recover. The spending will end with the leaders we currently elect, so it may be time to move to another currency. If you look at a currency exchange board the euro is two and sometimes it seems like three times stronger than the American dollar. This is during a time when euro is still suffering a major negative impact from a deep recession and people in places such as rural Ireland are really struggling just to survive. Despite all of this, the euro is dominating the dollar. Gold on the other hand remains a force in the Forex currency exchange markets for example.
The dollar is also doomed if we continue to conduct our foreign policy in a way that makes the rest of the world question our motives. Many countries who could be investing in our treasury bonds because the United States is suppose to be a capable superpower. We must begin to adopt rational, non-egotistical diplomatic efforts in order to get people to believe in our country and our economy again. The truth is that otherwise people will begin to completely abandon the dollar not on just economic grounds, which already lends itself to strong enough of an argument.
To learn what a collapsing dollar means for the price of gold, then check out our free guide which explains Why Gold Prices Haven’t Peaked Yet. You’ll learn why the price of gold and gold coins will still be increasing for years to come.
To learn how you can cope with a collapsing dollar, read How to Use Gold as a Hedge Against Inflation. This is a very “how to” oriented article which will help you make a decision for how to live your life. Little theory, lot’s of application — exactly what you need to get started buying gold right now.