Tags: Bud Conrad Dollar to Crash to Zero | Gold Will Surge

Bud Conrad: Dollar to Crash to Zero, Gold Will Surge

By    |   Friday, 28 May 2010 10:47 AM

The global debt crisis will send the dollar and other paper currencies to zero, and gold will be the beneficiary, says Bud Conrad, chief economist at Casey Research.

“The dollar is coming back right now, but it’s a false recovery,” he told Newmax.TV. “All paper currencies are just that.”

Most money now, of course, consists of digital bits rather than paper, notes Conrad, author of a new book “Profiting from The World’s Economic Crisis.”

A government can create digital bits out of thin air anytime it wants,” he points out.

Get Bud Conrad’s "Profiting from The World’s Economic Crisis" at a Great Price from Amazon – Click Here Now.

“Only by convention have people used paper money, now digital money, as if it had some real value. It’s merely the world’s biggest confidence game. I have no faith in any paper currency.”

Video — Bud Conrad: Dollar Will Crash to Zero While Gold Soars

Europe’s debt crisis currently makes the dollar more attractive than the euro.

“But in terms of long-term purchasing power, all paper currencies will eventually reach their intrinsic value, which is zero,” Conrad said.

Paper currency’s weakness is gold’s strength, he explains.

“Gold is up not because it’s physically changed,” Conrad said. It’s still just an element in the periodic table. “But paper money is what’s changing.”

The United States is at the point of no return for the budget deficit. “They’re never going to fix it,” he said.

“The government has mortgaged its future and taken on obligations that can never be paid. We are in a position where the dollar will decline in purchasing power.”

So gold, which has hit a record high of nearly $1,250, will rise further, Conrad says.

“For the long-term, gold will go up a lot higher than this.”

With Europe’s financial system in a state of collapse, “Europeans, instead of just buying dollars, will find themselves much safer buying commodities – gold, silver, platinum, palladium and copper,” Conrad said.

U.S. financial woes will push our stocks and bonds down too, he said.

The financial crisis here began with too much private debt, Conrad points out. “That morphed into a blue sky from government bailouts to the tune of $3 trillion,” he said.

And that bailout included Federal Reserve purchases of non-government guaranteed mortgage-backed securities that Conrad calls “unconstitutional.”

Until recently most experts predicted a typical economic recovery, but those forecasts are wrong, he says.

“This isn’t a typical crisis.” Now it’s turning into a government debt crisis, Conrad notes.

“So I’m very negative about paper from financial assets, both stocks and bonds.”

Video — Bud Conrad: Dollar Will Crash to Zero While Gold Soars

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The global debt crisis will send the dollar and other paper currenciesto zero, and gold will be the beneficiary, says Bud Conrad, chiefeconomist at Casey Research. The dollar is coming back right now, but it s a false recovery, hetold Newmax.TV. All paper currencies are...
Bud Conrad Dollar to Crash to Zero,Gold Will Surge
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