U.S. Dollar

US Dollar Devaluation Prediction for 2015

A debt crisis has taken the western world by storm, but few seem to be sounding the alarm. The U.S dollar, the go-to currency for global economic stability and growth, is imploding at an unprecedented rate.

Profit Confidential editors have been critics of the U.S.’s inability to reign-in government spending. Based on the White House’s own figures, the national debt will reach $20.0 trillion by the end of this decade—about 140% of our current gross domestic product (GDP).

Historically, countries that have incurred considerable debt and consistent national debt-to-GDP multiples of 120% or more have experienced currency devaluation. The U.S. dollar has been in a free-fall against other major world currencies since 2009.

You have to print money to make money. No one knows this better than the Federal Reserve. Since November 2008, the Federal Reserve has initiated three rounds of quantitative easing (QE) in an effort to create more economic activity and increase home prices.

What have three rounds of QE accomplished? It was supposed to increase lending, create more jobs, and lower the unemployment rate. Instead, banks are sitting on a pile of cash and remain tight-fisted, fewer jobs have been created, and the real unemployment rate remains high.

What QE has done is flood the global markets with trillions of U.S dollars. It’s not as if this new-found money is backed by gold. It’s simply created out of thin air.

What’s keeping the U.S. economy afloat? The Federal Reserve has artificially propped up the U.S. economy by buying a majority of the government debt issued by the Treasury department. As a result, the U.S. government has become dependent on borrowing (creating money) to finance itself.

At Profit Confidential, we expect the U.S. dollar to devaluate as the U.S. continues to pile on the debt. You can find regular commentary on the U.S. dollar in Profit Confidential.


Goldman Sachs: Gold Prices Could Fall Below $1,000

By Wednesday, July 22, 2015

Gold PriceGold prices could plunge below $1,000 an ounce. At least, that’s the latest gold price forecast from Goldman Sachs commodity research headJeffrey Currie.“The risks are clearly skewed to the downside in this environment,” he told Bloomberg in a telephone interview on Tuesday. “There is a probability that the market trades. Read More

NASDAQ: Stock Market Rallies on Strong Earnings

By Monday, July 20, 2015

The NASDAQ opened slightly higher on Monday July 20th, as Greece reopened its banks and started the process of paying off billions of euros owed to the International Monetary Fund (IMF).European equities soared to six-week highs on Monday as Greece began to return to normality after a deal to agree on a new bailout package. Volatility. Read More

NASDAQ Hits Record High on Google Inc. (GOOG) Earnings, Economic Data

By Friday, July 17, 2015

NASDAQ Hits Record HighThe NASDAQ opened higher on Friday July 17th after strong earnings results from Google Inc. (NASDAQ/GOOG, GOOGL) and positive economic data. This could eventually give clues on the timing of an interest rate increase.The U.S. dollar is heading for its biggest gain since May after economic data increased the possibility of an interest. Read More

NASDAQ Opens Higher on Strong Economic Data

By Thursday, July 16, 2015

NASDAQ Opens Higher Economic DataThe NASDAQ opened higher on Thursday, July 16th, as investors cheered a Greek bailout approval and strong corporate earnings. European stocks climbed and bond yields fell on Thursday after the Greek’s parliament approved a proposed bailout plan. Eurozone stocks rose 1.5% to 3,676 points and Germany’s DAX rose 1.6% to 11,722 points.. Read More

Oil Prices: This Could Send Crude to $40.00 per Barrel

By Thursday, July 9, 2015

Oil Price Drop 40 BarrelDon’t look now, but $40.00 oil may soon become a reality.Crude oil prices skidded eight percent on Monday July 6th—the biggest single-day decline in more than three months—as oil oversupply fears continue to spread among investors.As investors try to sort out whether the global oil market has stabilized from a historic collapse,. Read More

Video: Here is why you should be Bullish on Gold | By: Michael Lombardi

Poll

Would you vote for Donald Trump if he was the Republican Nominee?

View Results

Loading ... Loading ...
Profit Confidential
×
54.227.1.130
From: Michael Lombardi, MBA
Subject: Gold: The Stock Contrarian Investors’ Best Play of the Decade

Read this message