Hopelessly tied to the dollar

http://www.cnbc.com/id/27998655

CNBC has boldly declared that cash is the new "safe haven" investment, replacing gold. How did they come to this conclusion? Gold took a $43 hit yesterday, of course, so that automatically makes the phony rally in the dollar the safest investment ever.

I am continuously amused by these so called 'experts' on TV and spout off about the strengths of the dollar and how gold will never rally. Do they ever think about the consequences (or to use a phrase Ron Paul likes to use, "blowback") that will result from the actions our Federal government is taking? Of course the dollar is strong right now, we are in an extreme case of deleveraging, Treasury bonds are being used to get a return OF dollars instead of a return ON dollars, and the Fed has made a statement that any mildly-large company will not be allowed to fail. The price of gold, on the other hand, is being manipulated by coordinated selling by central banks, thus keeping the price low. Bernanke admits it.

I am convinced that people, in general, are unable to see the bigger picture. Run the printing presses at full speed and worry about inflation later. Invest in cash and worry about the devaluation later. This mindset is seen everywhere you look. But what happens when this deflationary period reverses itself when the phony money begins to creep into our economy? What happens when the government credit rating gets downgraded from AAA and other countries holding our Treasury bonds flee the dollar like the plauge? Are we going to have time to respond to that?

The answer is no, because the reversal will come hard and fast. And it will happen sooner and more severely so long as the government continues to enact phony "preventative" measures that have failed time and time again.