DOLLAR DEVASTATION! - Craig R. Smith, CEO SATC

May 08, 2003


"The fact that Europe offers a better interest rate than the U.S. makes it difficult for us to attract the $1.5 billion a day needed to fund the current account gap. Investment flows just aren't coming into the U.S."
-Brian Taylor, head currency trader, Manufacturers & Traders Trust Co.

The U.S. dollar is in deep deep trouble. The Euro hit $1.15 today. Just a week ago or so it was at $1.10. The dollar is literally falling apart before our eyes and the media is not explaining the profound impact this will have on the future.

For example, if you are making 6% return (Warren Buffett's realistic number) on your money in the market and you are losing 5% a week against currencies, where are you at the end of the day?

If you have a savings account that is earning X amount and the dollar drops X amount, what happens to the savings account 10 years from now? If you put $10,000 away, back in 1970 when a new car was $2900, today that $10,000 must equate to at least $25,000 - just to get the same car!

What do you currently have in your investment portfolio that will offset the effect of the dropping dollar?

The U.S. dollar could be losing it's role as the #1 reserve currency in the world. But that isn't the only problem. What currency will replace it? The Yen...Euro...or the new Islamic Gold Dinar?

This scenario is no longer a far-fetched dream of some psycho doomsdayer, it is a reality. If you look at a chart of the dollar versus the euro (above) it is nothing short of frightening.

The most undervalued commodity on the earth in any ones terms has to be gold.

So, either the dollar has to go through serious recovery or gold has to explode upward in price. There is no other choice. Either way the purchasing power of the average American (or world citizen who uses dollars for that matter) is getting ready to change radically.

The only way to bolster the dollar is to raise interest rates and start offering a reasonable return. Why hold these dollars long that are dropping like lead weights, when other alternatives exist?

Think of how the dollar crisis will effect the real estate and stock markets? How about the effect on new car sales or mortgage refinancing?

The Fed is trapped. Now all gold owners have to do is wait. Sadly, people who don't own gold WILL suffer. Absolute guaranteed. Doing nothing right now is no longer a viable an option.

Smart investors should take the drop in the dollar into consideration in every financial decision you're faced with right now. It is a factor that you just can't avoid - unless you are a government with a printing press.

Call and speak to a Swiss America broker to find out how simple it is to overcome the devastation to your dollars at 1-800-289-2646.


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