Posted May 21, 2013 by Martin Armstrong
If anyone wants to know why the dollar will soar to new highs, just stop and look at Europe. The gold promoters will claim the bank crisis will make gold soar. But the dollar will soar. France is out to shut down gold sales and has outlawed buying or selling gold for cash. They are tracking every ounce. The smart Europeans will move their cash to the USA before they can’t get out or go to Asia maybe better. But the bottom line – it is the dollar that is becoming the ONLY game in town.
The banking crisis in Europe is worse that the US ever was. The US was a trading loss, this is a systemic failure that is more than $1 trillion in bad loans when the USA was $700 billion. France wants total seizure of assets to secure socialism. This is like cutting off your head because you have a headache. The denials of the Cyprus solution would ever be applied to the EU have faded into the night. The politicians cannot see for an instant what they are doing to the world economy. When I said we have a Crisis in Democracy – this was not hype. The EU will seize bank deposits to bailout the banks. The governments are unwilling to put in that money because they cannot sell it to the people. Germans are not interested in bailing out the banks in Italy or Spain.
A slowdown in British inflation sent sterling to a 7-week low on the view it could give the Bank of England more leeway to support the UK economy, and the yen lost ground after a Japanese minister rowed back on remarks suggesting the currency had weakened enough.
The Dollar is the Prettiest of the Four Ugly Sisters – Europe, UK, Japan & USA
Long Live the Dollar