FED DRIVES DAGGER THROUGH THE HEART OF DOLLAR

Yesterday, the Federal Reserve drove a dagger through the heart of the dollar by announcing $1.15 trillion in additional printing of money to try to help stabilize the financial system. The most aggressive move was to announce they are going to buy $300 billion worth of long-term treasuries over the next six months. This immediately caused the dollar to fall and gold to skyrocket. Yesterday, the dollar fell 267 basis points. Today it is down another 163 basis points at 82.97. The Dow Industrials rallied on the news from the Fed, however, it quickly fell back and is trading down 16 points in the first half-hour of trading. Gold soared on the news and is up $63.60 this morning, while silver is up $1.53. Platinum is up $58.50 and palladium is up $13.25. Oil also skyrocketing reaching a high $52.25 this morning, and is currently up $3.08 at $51.22 a barrel. Gold earlier in the day was up $69.00. While it is off that high, it is still trading above $950 an ounce suggesting if this move holds through tomorrow, which it is likely too, gold will likely move to challenge $1,000 fairly quickly.

Analysts are saying that the central bank's program of buying treasuries will likely have longer-term implications for gold as an alternative to currency and as a safe haven. We must not forget that the Fed is also going to raise the size of the lending programs aimed at reducing mortgage rates by another $750 billion. It seems that the Feb thinks the problem with housing is interest rates. That is really not the problem. The real problem with housing today is the loss of jobs. In that sector new claims for unemployment declined 12,000 to 646,000, while continuing claims for unemployment rose 185,000 to 5,475,000 the highest level since the government started keeping track in 1967. While the intensity of this rally in precious metals may wane somewhat, there are going to be longer-term ramifications.

We are seeing the most aggressive monetary inflation in history. Sooner or later that monetary inflation will speed through the system and result in rising prices. Perhaps we may even see some sort of hyperinflation in at least a few asset categories such as commodities. Every country that has printed money to address financial problems has always ended with the currency collapsing. While the dollar may not collapse in a traditional sense, it is likely to fall very aggressively, which will support gold moving up to new all time record highs.

Price inflation may take longer to feed through the system. But sophisticated investors are accumulating inflation hedges in anticipation of that. It would appear at this point that a deflationary depression has been ruled out. However, an inflationary depression may be coming into view. Analyst Mark O'Byrne told the Dow Jones Wire Service this morning, "The Federal Reserve's plan is extremely high risk and astute observers are very concerned regarding the potential for very significant inflation in the coming months."

The situation with a very weak dollar, rising energy and commodity prices, and the prospect for inflation to increase significantly are all factors driving the precious metals higher. That is why investors need to get into this market at once. Do not overlook the fact that there is a potential for a very aggressive move on the upside. Two different analysts told Dow Jones Wire Service today that gold could make a very substantial move on the upside once it passes through $1,000 again. One of them was Mr. Groenewegen, the managing partner of Silver Arrow Capital. He further said there are substantial worries about the outcome of the Fed's "desperate" measures and the government taking on massive debt.

I think one of the big questions is whether foreign central banks and foreign investors are going to continue to support the U.S. government debt market. If they start moving out of the debt and dollars we could see an amazing drop in the value of the dollar, which could lead to further problems. I have been saying repeatedly that the days of the dollar as the world's reserve currency are probably ending. Howard Ruff shared that view as have a number of other analysts. The world could give the U.S. a choice of either collateralizing the reserve dollar with gold or accepting a new world reserve currency. It that were to happen we could see gold prices at extraordinary levels.

Do not hesitate to get into this gold market. The old adage of "Don't wait to buy gold – buy gold and wait" is appropriate today. If there is some kind of dramatic change, it will occur suddenly and without warning. Certainly, almost no one expected we would see gold up $60 in one day. This is the kind of move that may foretell future moves in the event of an expanding dollar crisis.

Call Goldline today to get started at 1-877-341-2646. You may wish to ask Goldline about the Price Guarantee Program. No one else offers that program. It provides you with a two-week window of opportunity to re-price your transaction to get more gold or silver for your money in the event of a correction. Call Goldline at 1-877-341-2646 for the details to see if you may qualify for that program.

Goldline continues to offer the free information package that contains outstanding articles explaining the problems the dollar faces and inflation and other factors that are extremely important for today's investors. We are all affected by a falling dollar. A collapsing dollar would have monumental impact on every single one of us. That is why the articles that discuss these issues are extremely important for every investor. We have put in the package the new article that discusses the proposal by Russia to abandon the dollar as the world's reserve currency. There is also the article quoting UBS Bank, which explains the potential consequences for such an action on the price of gold. In addition, if you say, "Joe said to call" you will be able to receive a free copy of the CD interview I did with Frank Barbera. You will note in the interview he forecast the situations that are occurring right now. You need to listen to what he has to say. He is a brilliant man. Also, when you mention my name "Joe" you will also get a free copy of the American Advisor Newsletter, a $25 value. Call Goldline now at 1-877-341-2646.

Investors should contact Goldline and ask them to explain the features, benefits and cost structure of the various gold and silver investments that are available to you. Select those that best meet your own personal and individual investing needs and objectives. Investors looking for low transaction costs may wish to consider bullion assets such as American Eagles, Krugerrands, Canadian Maple Leafs, Silver Bags or Silver Bars. However, the Price Guarantee Program is not available with these assets.

If you would like to take advantage of the Price Guarantee Program, which provides you with a two-week window of opportunity in which to re-price your order in the event of a correction, you must select assets with some collectible value such as 20 Francs, Double Eagles and Silver Dollars. Call Goldline at 1-877-341-2646 for further information on the Price Guarantee Program.

To receive the free information package including articles on the dollar, the economy and gold, call Goldline at 1-877-341-2646. Goldline also provides several other helpful articles. There are a number of other independent third-party source articles that you will find extremely helpful and informative. You will also receive the Client Account Agreement, a company brochure and a Coin Facts Risk Disclosure booklet. Read these carefully before you make an investment. Call Goldline at 1-877-341-2646 now to receive your free information package .