Courtesy Jim Willies "Hat Trick Letter"...

"There is a sense that in some very defined and critical way, the dollar and the US have lost their way. The US has borrowed so much from foreigners. They have a rising budget deficit and few ways to bring it under control that investors see as viable. Those are things that affect the value of a currency." -- Stephen King, chief economist at HSBC

"Risk appetite remains intact overall. The Federal Reserve is likely to be among the last to exit. That means the dollar will stay under pressure to be sold in exchange for higher yielding currencies." -- Tokai Tokyo Securities

"The death of Lincoln was a disaster for Christendom. There was no man in the United States great enough to wear his boots. The bankers went anew to grab the riches. I fear that foreign bankers with their craftiness and tortuous tricks will entirely control the exuberant riches of America and use it to systematically corrupt civilization." -- German Chancellor Otto von Bismark (after the Lincoln assassination)

INTRODUCTORY UPDATE

◄$$$ FOR A CHILLING BUT REALISTIC SCENARIO, CHECK OUT HOW THE DOLLAR MIGHT DIE. IT IS A REALISTIC ACCOUNT THAT IS EXTREMELY CONSISTENT WITH MY VIEW, AND WITH THE PROSPECTS DESCRIBED TO ME FOR ALMOST A YEAR BY CONNECTED FOLKS. GOLD HALTED AT 1500 AND SILVER HALTED AT 80, EACH READY TO ZOOM MUCH HIGHER, EXCEPT THAT THE COMEX AND OTHER EXCHANGES WERE HALTED. $$$

Check out "The Day the Dollar Died" by John Galt (CLICK HERE), a fictional scenario that is rooted in reality, with very reasonable directions. The panic hits next February 22nd. The price of gold & silver based on equilibrium of supply & demand remain unknown for days. Their last known prices are $1500 and $80 per oz, as the metals exchanges shut down. The COMEX reacts to being unable to fill the flood of buy orders, following a $200 move in gold and a $40 move in silver on the previous day. The Euro currency moves toward 200, the Canadian$ over 130, the Aussie$ at 140. The crippled giants Citigroup and Bank of America are nationalized, after a staggering overnight loss to each in the hundreds of billion$. This follows a USTreasury auction failure with chain reaction afterwards, replete with foreign creditor deep resentment and anger. Foreign economies and markets, one by one, begin to refuse USDollars. Closer to home within the United States, the supply chain lacks inventory, no cash in ATMachines, empty shelves in stores and supermarkets, canceled airline flights, bank accounts not quoted, unresponsive internet webpages, stock markets plunging, life savings decimated, as chaos grows. The next challenge: to convert coin to potato. In other words, to begin cashing in on extremely profitable precious metal investments that saved personal wealth, and purchasing life's necessities like milk, bread, eggs, and a chicken sandwich. No need for a movie, since reality overwhelms art.

ME: Bear in mind that the US-UK tagteam is devious and very inventive in their manipulative interventions. They know how to buy time, but they are surely running out of time. The date in my view for the full blown crisis climax will be after February, probably more like June or mid-summer 2010 for a serious breakdown. For certain, the process has begun and is not stoppable.