THE BEGINNING OF THE END FOR THE DOLLAR 195You can see what happens. The dollar collapses because no
one wants them.
Here’s the point. If case one was stable, case two is a cata-
strophic collapse. The only difference was three one thousandths
of 1% of the people. You didn’t have to change three hundred
million people’s minds. You only had to change a tiny, tiny frac-
tion. This is completely characteristic of complex systems.
Minute changes in initial conditions cause catastrophically
different outcomes in the system as a whole. This is the world
we live in.
This is an actual model that describes the economy — not
the one the Fed is using. Are we at this point? Not yet and we
won’t know when we’re there until it’s too late.
I can tell you, however, we’re getting closer with the Fed mon-
ey-printing, bank derivative creation, increase in the scale of the
system and the concentration of assets. We’re getting closer to that
critical state and the point at which the entire system collapses.
It’s happening slowly and invisibly, but you can see the mo-
mentum. That momentum is going to build until suddenly we
get to the point where there is a new global reserve currency,
which, of course, is highly inflationary. Investors need to get out
of the dollar system and there are a number of ways to do that.
You can buy gold, silver, land, fine art, carefully selected
hedge funds, some mutual funds and select energy, transpor-
tation, natural resources, water and agriculture stocks. There
are plenty of companies that have hard assets underneath that
will survive the coming inflation.
It’s a fairly dire forecast but it doesn’t make me a “doom
and gloomer”. I’m just realistic about what I see. It doesn’t
mean you have to live in a cave. I don’t. I wake up every day.
I’m an investor, a writer, an advisor and an analyst. There are
always things to do to protect your wealth.
I wouldn’t discourage anyone from being an active inves-
tor, but just be smart about it and know what’s coming.