The Risk Of A Dollar Crisis Increases By The Day

Incredibly, the dollar has lost 7.5% of its value in less than 3 months (since January 7th 2011) and more than 17% in just 8 months since August 2010. Hence the nominal record highs in gold and silver. The volatility and sharp falls in the dollar are leading to deepening inflation throughout the world (as seen in the UK inflation rate of 4.4% today). Thus, the dollar’s safe haven status is being increasingly questioned.

This could feed on itself and lead to a currency crash as was seen with the British pound in 1992. The monetary and fiscal position of the U.S. today is many times worse than that of the UK in 1992 which makes this risk very real. Read the rest of ZeroHedge's story here.