...It ain't gonna be easy. But I believe at the very onset of the next crisis, investors will flood into T-bonds and some commodity prices will slip.
Now don't get me wrong – the dollar is on the verge of crashing and only gold is money. But the next crisis won't be a doomsday crash. There's still an opportunity transfer cash savings into gold and silver.
If an event erupts sending ripples through the financial system, then dollars will be the defacto safe haven. Gold is a close second, but for now the dollar has more psychological stability. But continual dollar debasement will only ensure future disaster. Until then The Bernank can continue to pull out his “twists” and “quantitative easing” while keeping interest rates at zero. This somehow masks the fact that the Fed is printing money until it is too late.
When people flee the dollar, investors will realize what some of us have known since 2008:
The banks are insolvent.
The people will be left with nothing but paper in their hands and a depressed economy; the Goldman Sachs gang will be living on private islands somewhere in the Pacific. All the top players have offshore accounts, they'll abandon their banks and live out retirement elsewhere. Protected by governments and trillions in commodities, it'll be the biggest heist in history. Instead of people robbing the bank, the bankers will have robbed the people.
Not everyone will be caught with their pants down though. Those that invested properly beforehand will be spared the embarrassment. Which brings me back to the next crisis:
This could be your last chance. The dollar isn't dead yet, it survived the summer stumble and it made it out alive in '08. If crisis hits Europe, Canada or anywhere but the States, the dollar should be good for one more round.
But I wouldn't hold my breath for 2012.