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Goodbye Greenback

Written By Brian Hicks

Posted November 2, 2007

Dear Wealth Daily reader:

This morning I got an email from Wealth Daily founder Mike Schaefer.

If you’ll recall, Mike was one of the first to tell you to get all of your money out of US dollars and into Canadian dollars. In fact, Mike was urging me in 2004 to get all of my investments into Canadian dollars.

Today, the Sage of Wyoming has been 100% validated.


I get the sense that Mike believes the rally in the Loonie isn’t done. Here’s what he wrote to me this morning . . .

This is from John Maynard Keynes, the famous British economist who died 60 years ago! "The best way to destroy the capitalist system is to debauch the currency. By a continuing process of INFLATION governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens."

Jimmy Rogers moved all of his money into the renminbi.

I think Jimmy is on to something.

According to

Central banks, lauded as near infallible pilots of the monetary economy in recent years, are facing uncomfortable doubts about their collective grip on credit markets, interest rate structures and inflation.

The net result is that market inflation expectations, crucial in assessing investor confidence in central banks keeping a lid on inflation over time, are now rising.

"The Fed’s forecasting record is in tatters, the dollar is in tatters and inflation expectations are ticking up," said Nick Parsons, chief market strategist at nabCapital in London. "They are now in danger of losing control of every part of the yield curve from overnight out to 10 years."

"Losing control of Libor may be unfortunate, but losing control of official rates is potentially disastrous," he said.

Whether he carries part of the blame or not, former Fed chief Alan Greenspan said this month he believes central banks, including the Fed, have struggled for years to influence long-term rates central to the pivotal housing boom and bust.

"Central banks have essentially lost control of markets beyond 3, 4, 5 years out," Greenspan said.


Of course, here at Wealth Daily, we’ve got the medicine to protect your portfolio from the devastating effects of currency destruction: It’s gold, baby, gold.

Here’s a snippet from Greg McCoach’s Mining Speculator hotline that was released Wednesday:

Between now and the end of the year, I wouldn’t be surprised at all to see gold over $900 an ounce and silver pushing well above the $15 an ounce level.

For 2008, I feel both metals are now poised for major moves higher, with gold hitting $1,400 an ounce and silver moving over $30 an ounce at some point during the year.

My long-term guess as to where gold and silver will peak out is:

Gold: $2,800 an ounce

Silver: $150 an ounce

At the New Orleans conference, Greg made a rather stunning prediction. He said he anticipates that gold will have a $100+ day real soon. In other words, he expects gold to rally $100 in a single day.

I wouldn’t bet against either Mike or Greg.

Profit, don’t panic,


Brian Hicks