Dollar's Collapse Would Result In The 'Amero'

Asked why the Fed decided to stop publishing M3 data, Kuever told WND, "The Fed probably wants to hide how much liquidity is being pumped into the market, and I expect the trend to keep pumping liquidity into the market will continue, especially since the economy is slowing down." "The trend line in my M3-plus-debt chart is staggering," Kuever said. "There has been a straight, long-term trend line of M3-plus-credit increasing since 2000. Long-term, we are creating inflation and the dollar has lost almost 98 percent of its value in the past 100 years." Kuever, a retired investor, is concerned that with growing budget and trade deficits "the dollar could collapse." "Especially if the Fed cannot increase rates, because we have already entered a recession," he said. Bob Chapman, who issued a reconstructed M3 estimate to the 100,000 subscribers to his newsletter, "The International Forecaster", agrees. "The world is awash in money and credit," Chapman told WND. "My numbers show M3 increasing at about a 10-percent rate right now." Chapman believes the U.S. economy entered a recession in February. In his newsletter of Dec. 9 he predicted the Fed would hold interest rates at 5.25 percent. "The Fed is in a very tough spot here," Chapman wrote, "If they raise rates, the real estate market will collapse, and if they lower rates, the dollar will collapse." http://www.rense.com/general74/dollar.htm [Proofreader's note: this article was edited for spelling and typos on December 18, 2006]

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