"If the dollar loses status as the world's most reliable currency the United
States will lose the right to print money to pay its debt. It will be forced to
pay this debt," [Dick] Bove said. "The ratings agencies are already arguing that the
government's debt may be too highly rated. Plus, the United States Congress, in
both its houses, as well as the president are demonstrating a total lack of
fiscal credibility.
The dollar's seemingly precarious status is why [Michael] Pento remains bullish on gold
and believes the dollar's demise as the premier reserve currency could end even
sooner than Bove predicts -- perhaps by 2015.
"Five to 10 years -- that would be an outlier," he said. "I would say 2015,
2016, that would be the time when it becomes a particularly salient issue. When
we're spending 30 to 50 percent of our revenue on debt service payments, we
enter into a bond market crisis. The dollar starts to drop along with bond
prices. That would set off the whole thing."
http://www.cnbc.com/id/100461159
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