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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (23675)	10/21/2009 4:00:28 PM
From: Tommaso	Respond to of 71407

The tables in this paper tell a clear story, up to ten years ago. parliament.uk During the period that saw the American and French Revolutions, and the Napoleonic wars, the pound lost about half its value. Then for a hundred years it oscillated around what would have been about ten pounds in 1974. That means that from the outbreak of the First World War until 1974, the break-up period of the British Empire, it lost about 90% of its value. Since 1974 it has again suffered about a 90% decline, meaning that it is worth about 1% of its real value during the height of British power. Maybe the pound should be valued in terms of beer. In the last 50 years, a pound has gone from buying about 12 beers to buying about one beer. This is my own calculation and is based on my own experience. That is a decline of about 92%. In the same period the dollar has declined from buying maybe four beers to buying maybe 1/3 of a beer (restaurant prices). Pretty comparable to the U. K. My guess is that we could see a further dollar index decline to about 50, the way that the pound dropped by half from 1914 to 1940. I think the decline will be gradual. Nobody wants complete financial disruption. But I also think gold could move more quickly. And the miners, being leveraged to gold, even faster.