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Columnist: Dollar will crash, gold will stand

Release Date: 
Monday, November 1, 2010

Columnist: Dollar will crash, gold will stand

Nov. 1, 2010

The dollar is in the last days of its role as the world’s reserve currency according to an opinion column written by a senior managing director of a New York asset management firm. Writing for Bloomberg, John Hathaway of Tocqueville Asset Management noted that the abandonment of sound fiscal policy in favor of quantitative easing and the central banks’ plan to create “the right amount of inflation” will lead to a chaotic breakdown of our monetary system..

"When inflation commences, it will be highly disruptive. The damage to fixed-income assets will seem instantaneous. Foreign-exchange markets will become dysfunctional. The economy will become even more fragile and unpredictable."

Mr. Hathaway pointed to gold’s recent ascension as a bellwether for the ongoing monetary destruction, noting gold’s rise to $1,381 per troy ounce occurred during discussions and disagreements among major nations concerning quantitative easing and currency valuation.

"Naysayers point to gold's price and see a bubble, without understanding that the only acceleration that is taking place is in the rate of decline of paper currency," Hathaway writes. "The Fed is organizing an attack on the dollar's value, believing that this is the most expedient way to defuse deflationary market forces… Anti-gold pundits provide a great service to those who grasp this historical moment: They facilitate the advantageous positioning of the one asset most likely to be left standing when the dust settles." 

This news article is independently provided by Brafton and does not represent the views or opinions of Goldline International, Inc. Although the information in this news alert has been obtained from sources believed to be reliable, Goldline does not guar­antee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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