Fed chairman Ben Bernanke delivered a big speech yesterday and never mentioned the beleaguered dollar. Not once. This is just incredible — beyond the pale. And so for now, the story remains the same: Gold and commodities continue to boom, while the greenback plunges further.
Let’s be clear here: Mr. Bernanke is playing with fire. He is creating and fueling yet another speculative bubble that could spell doom for the bull-market recovery. This is why I’ve been calling it a storm cloud.
One last point here. The dollar’s demise is a sign of global declinism for America. This could be the worst part of the whole story. If the Obama administration wants to undermine American leadership and exceptionalism, and treat this country like all the other C-students around the world, they are sorely mistaken.
When the U.S. leads, the world prospers. When the U.S. declines — as in the 1970s — the world falls apart. The dollar therefore becomes a symbol, as well as a reality.