28 July 2008 - 19:19Market Commentary 7/28/08

The taxpayers of the United States had to shell out around $862 million to bail out a traditional bank through the FDIC insurance program. I guess in the overall scheme of things it does not really matter in a small way because the Fed can just print more money and loan it to the Federal Government to pay for it. In a big way though it shows exactly what is wrong with U.S. government’s monetary policy and their abandonment of sound money. That coupled with unsound banking lead to the recent events. The good news is we can trade FX and short the dollar to profit. Just like the banks did who are responsible for the whole situation. The bad news is there are large a chance of a very hard landing for the U.S. economy to say the least.

If you look at the long term charts it’s clear we are headed back to the dollar being as weak as it was in the seventies and worse. Obviously make money for your families while you can but make sure you buy some Liberty dollars and request the coins or buy gold contracts and take delivery.  Because in the end that is the only thing that can save you from a currency collapse taking all your money. It is really only a matter of time.