U.S. Dollar Collapse Starting Next Monday?

so as the tax revenues plumment as shown in the article below, the government prints more money to make up the shortfall to pay its bills.. Jim Sinclair is exactly right.. see below...

http://news.yahoo.com/s/ap/us_plummeting_taxes

Jim’s Formula:
September 1, 2006

1. First interest rates rise affecting the drivers of the US economy, housing, but before that auto production goes from bull to a bear markets.
2. This impacts many other industries and the jobs report. An economy is either rising at a rising rate or business activity is falling at an increasing rate. That is economic law 101. There is no such thing in any market as a Plateau of Prosperity or Cinderella - Goldilocks situations.
3. We have witnessed the Dow rise on economic news indicating deceleration of activity. This continues until major corporations announced poor earnings, making the Dow fall faster than it rose, moving it deeply into the red.
4. The formula economically is inherent in #2 which is lower economic activity equals lower profits.
5. Lower profits leads to lower Federal Tax revenues.
6. Lower Federal tax revenues in the face of increased Federal spending causes geometric, not arithmetic, rises in the US Federal Budget deficit. This is also true for cities & States as it is for the Federal government.
7. The increased US Federal Budget deficit in the face of a US Trade Deficit increases the US Current Account Deficit.
8. The US Current Account Balance is the speedometer of the money exiting the US into world markets (deficit).
9. It is this deficit that must be met by incoming investment in the US in any form. It could be anything from businesses, equities to Treasury instruments. We are already seeing a fall off in the situation of developing nations carrying the spending habits of industrial nations; a contradiction in terms.
10. If the investment by non US entities fails to meet the exiting dollars by all means, then the US must turn within to finance the shortfall.
11. Assuming the US turns inside to finance all maturities, interest rates will rise with the long term rates moving fastest regardless of prevailing business conditions.
12. This will further contract business activity and start a downward spiral of unparalleled dimension because the size of US debt already issued is of unparalleled dimension.

Therefore as you get to #12 you are automatically right back at #1. This is an economic downward spiral.

I heard all this “slow business” as negative to gold talk in the 70s. It was totally wrong then. It will be exactly the same now.

I totaled up the rise in prices for all the basic necessities I expend money on. Things you can't do without, like food, utilities, insurance, etc. So far this year my personal inflation rate is 26%. On the other end of things I've noticed something else happening. Work has been picking up, BUT, I have found that once people get me to do the work, they can't pay me, or they can only pay a portion of the bill. It does not even out at all. My personal standard of living has gone straight down hill for over a year with no end in sight. We are in big trouble.
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www.CampaignForLibertyStuff.com

Who cares if the dollar "collapses"? So what? Prices go up, but you get paid more so it evens out. Maybe we can finally have a "earth currancy" wouldn't that be great.

Remember that "the dollar" in this context means the power of the dollar to buy a basket of other fiat currencies. All fiat currencies are in mega trouble.

There is a case that the dollar is poised for a rally. Bullish sentiment for the dollar is very, very low. That contrary indicator means that traders and speculators who might short the dollar have for the most part already done so. They could get caught in a short squeeze -- again. That would send "the dollar" quickly higher.

Me? Aside from my core position in physical gold and silver, I am almost totally on the sideline in US cash. That could change at any time. I do have a small bet against the 30 year Treasury bond. I'm watching very carefully.

P.s. Maybe I should not mention this, but I've found that Daily Paul sentiment is also a pretty good contrary indicator.

Be aware...this is a person whom has spent the past 2 years writing that the next day, month, or few months will bring everything from dollar failure to earthquakes to all our armegeddon.

I understand that when you constanly speak of imminent failure, you must occasionally change names so people might believe you a little, when you know damn well that if you kept being SierraHPBT, that people would continue rolling their eyes.

Eventually, the dollar will resume down, but if you keep waiting for an all-out collapse...it is evident that you don't have the first clue how monetary systems work.

www.jzneff.blogspot.com

But he's right. I am slowly getting out of the dollar and into Euros and Australian dollars.

People that are smarter than me are suggesting the Swedish Krona, the Norwegian Kroner and the Indian Rupee.

The dollar may hang on a little longer - it bounced back against the Yen, but the real problem is that people - around the world - have lost faith in the United States and its currency.

but by the middle to the end of September just before judgement day October 1, the start of the Federal fiscal year. The charts on your link showed the same thing that Bob Chapman on his web site has been saying. You never know, there maybe some banks this friday going belly up, and the FDIC to short of cash to cover them to kick this off.

http://www.theinternationalforecaster.com/