Comment: A rebuttal to John Williams from Shadowstats

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A rebuttal to John Williams from Shadowstats

I sell gold for a living and can't be as negative on the dollar so often like John Williams from Shadowstats calling for hyperinflation every year to sell his newsletter subscription.

The dollar isn't going to zero. To do so, by default, the Euro, Yen, Pound and other currencies that make up the basket (Dollar Index) would have to rise "to the moon" and that's just not going to occur. Have you seen the Debt to GDP ratios of these countries? Where are they compared to the U.S.?

The point is, it's not all about the U.S. If we are in currency wars, it is an illusion to think one will fall and others rise. This doesn't mean that eventually they will all fall (resume the trend) priced in gold. Just look at the 5 and 10 year charts for each. Eventually, gold will rebound and all currencies will buy less of it. But none can go to zero.

To say the U.S. dollar will go to zero when we have the world's largest and most powerful military and a willingness to use it is pure nonsense. We still produce as a country and yes, we have huge issues. But who is going to take over as the leader of the world and when? It sure isn't China. It sure isn't Europe. Japan is toast. Canada? Switzerland? Hardly.

There are many reasons to diversify into gold, but right now don't expect the dollar to crash by supporting his newsletter to keep you in fear. There are many out there that buy this story. Many.

I could easily write about all the negative issues occurring in the U.S. and the world and make a lot more money. A lot! But I try to call it like I see it. If I'm down voted for speaking up for the dollar, so be it. But riddle me this...why are U.S. treasuries so strong if the dollar is going to zero?

There's more to it than just the dollar and the future U.S. economy does have serious issues. But understand what a dollar is or represents; a basket of other currencies that would have to miraculously appreciate in order for the dollar to capitulate and go to zero.

Author of Buy Gold and Silver Safely
Next book: Illusions of Wealth - due out soon
Also writing book We the Serfs!