Wall Street's richest hedge fund manager on why he's Buying Gold today...
AMERICA'S FOREIGN CREDITORS aren't the only folk worried about the US Dollar, writes Porter Stansberry in the Daily Crux.
At Jim Grant's Fall Investment Conference two weeks ago in New York, John Paulson – the richest and most successful speculator since George Soros – explained his personal concerns about the fate of the Dollar.
Once the Fed began directly buying Treasuries and mortgages, I lost faith in the Dollar as a reserve currency for my assets...[So] what I'm looking at is not where Gold is going to be tomorrow, one week from now, one month from now, three months from now. What I'm looking at is where is gold going to be vis-a-vis the Dollar one year from now, three years from now, five years from now.
And I think with a high probability at each of those points, Gold will be higher than it is relative to the dollar today. That probability increases the further out you go, and the magnitude of that difference also increases the further out you go. So when I look at what the risk is, the risk to me is far more staying in Dollars than it is in gold at this point.
Right now, the Dollar is the world's financial medium. Demand for the Dollar comes wholly from trade and finance. Nobody needs the Dollar to buy goods from the United States – we have a massive trade deficit.
So what do you think will happen to the demand for Dollars around the world if the world's financiers follow Paulson's lead? What do you think will happen to the Dollar if the world's oil traders abandon it? And what do you think will happen to our country when the average American finally recognizes these things – which are happening right now...?
Lord, help us. I can only hope most of you have followed our hundreds of pleas to Buy Gold – and to put it someplace safe.