Not optimistic forecast for the us dollar from an expert on the gold market James Turk

An expert on the gold market, James Turk says the U.S. dollar will not retain its strong position. He notes: "Canada, one of the closest allies of America, have just signed a trade agreement, under which it deals with China will be in RMB and canadian dollars. This means that the US dollar will not be used. Thus, the forecast for the dollar is bad, despite being observed at the moment of its strengthening. It's sad, and, in my opinion, is a bad omen for the dollar in the future."

The expert continues: "of Course, the US government will do everything in his power to protect the dollar, and this means the introduction of more rigid control over the movement of capital. Some measures of control have already been introduced. So, for US citizens it has become almost impossible to come to Europe and open a Bank account. European banks just don't want to deal with the Americans.

Another type of control is that $ 16 trillion outside USA cannot be returned to the territory of America and spent here. If this happened, these foreign dollar sharply devalued Russian, because they would not have the same purchasing power, if it was spent in the United States." However, perhaps it would not mean default, which would lead to the collapse of the dollar?

Turk explains, "It would not have caused the collapse of the domestic dollar. This would cause the collapse of the international dollar against the domestic. The domestic dollar will in any case be subjected to inflation in the long run. But this is will have a immediate impact on the dollars outside the US that can actually lead to default."

How long can it last? Turk takes us back a hundred years ago to the time of the birth of the Federal Reserve System (the fed) and said, "One of the main responsibilities of government is to support the stable purchasing power of the dollar. Today the dollar is equal to one penny of the sample of 1913 purchasing power. This indicates the extreme degree of its depreciation. This overall picture is very important because the inflation and the declining real value of the dollar continued for a hundred years. Someone will object, why would this not continue for another hundred years?





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If you remember the example of the Roman Empire, the denarius was devalued hundred years until, until it collapsed. These processes cannot continue indefinitely. The main thing here is the size of the debt accumulated in the financial system, and the amount of money spent by politicians. The reason we don't have hyperinflation is that the US government cannot retain the amount of its arrears below its real value due to zero interest rates. We walk on a tight rope, it is fraught with serious consequences. In my opinion, we can expect further depreciation of the currency."

Referring to the price of gold Turk says: "the new York commodity exchange is simply a attraction. It's just the market. The real action takes place in London. Here you can get huge discount for consent to the transfer of calculations on fixed-term deal. If someone wants to make a large order, say, in the amount of 50 million dollars for physical gold, he will not get metal the next day. He will have to wait for some time. For me, this means that the price of gold is lower than the real one. The same thing is happening with silver. As a result, I believe prices will grow strongly by the end of the year."

Turk continues his reflections on the dollar: "we are Now seeing the tension around the dollar, all of these races of course, currently there is a temporary gain, but eventually the dollar will collapse. Sooner or later people will realize that this currency is no longer trustworthy".

 

источник:mixednews.ru

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