The Death of the Dollar: Will the Fed Kill the Greenback at Tomorrow's FOMC Meeting?
April 26, 2011 at 08:04 AM EDT
Months or years from now, when analysts are studying the death of the U.S. dollar, they'll look back and see that the greenback's demise began on a specific day - Wednesday, April 27, 2011. As in ... tomorrow. At 12:15 p.m. tomorrow, at the conclusion of a two-day Federal Open Market Committee (FOMC) meeting, we'll find out whether U.S. Federal Reserve Chairman Ben S. Bernanke and his policymaking posse opted for a sharp increase in U.S. interest rates - which appears to me to be the only solution to a looming third-quarter crunch. Unfortunately, I don't think that Bernanke & Co. will make the needed move. And without that sharp rate increase tomorrow, investors can look forward to rampant inflation, an evisceration of the U.S. Treasury bond market and - in a worst-case scenario - the death of the dollar. Let me show you why.... To understand why it's crunch time for the dollar, please read on ...