Several years back, I wrote a research report entitled "Greenspan's Revenge Plan to Put America Back on Top." In that report, I explained an unwritten and unacknowledged plan of the Fed and the government to lower the U.S. dollar against other world currencies with the ultimate goal of stifling foreign manufacturers.

While he is presently the scapegoat of the U.S. housing crisis, in my opinion, if Alan Greenspan is to have a legacy as former Federal Reserve Chairman, lowering the value of the U.S. dollar against other world currencies will be his eventual greatest contribution to the American economy.

You won't read about Greenspan's role in lowering the U.S dollar in his recent autobiography or studies others have undertaken of his multi-year role as Fed Chief. Most will say that Greenspan never had a role in it. However, this is what I believe history will eventually acknowledge as being his single most important accomplishment.

The U.S. Commerce Department reported late last week that March factory orders, to everyone's surprise, had risen 1.4%. The increase for durable goods, those goods meant to last a few years, rose by an even greater amount. The jump in U.S. factory orders has a direct relationship to the decrease in value of the American dollar against other world currencies.

For years, I have written that the U.S. would like to see the value of its currency slowly fall in value against other world currencies, primarily the yen, yuan and the euro. Such an event would result in Americans starting to buy "Made in America" goods again over foreign imports. The strategy would also help immensely with our trade deficit problem.

While the U.S. dollar has strengthened as of late, as economists and analysts digest the fact that the Fed may be finished reducing interest rates for now, I would expect the long-term trend of a falling U.S. dollar to continue. And for gold bugs like me, it means that the yellow metal can continue its long-term upward trend. (I'll have more on gold in the next editorial issue of PROFIT CONFIDENTIAL.)

NEWSFLASH: The U.S. Labor Department reported Friday that 20,000 jobs were lost in April, a much better number than the 80,000 to 100,000 jobs analysts had expected America to shed in April. Even weekly first-time jobless claims are at a two-month low! Is this what the stock market has been telling us... that the economy is in better shape than consumers and analysts understand? Yes. This is exactly what I have been trying to get across in my writings for the past three months.