Analysts: Dollar collapse would result in 'amero'

Think deep recession likely regardless of
Fed's actions

Jerome R. Corsi

Prisonplanet.com

Wednesday, December 13, 2006

Two analysts who have reconstructed money supply data after the Fed
stopped publishing it argue a coming dollar collapse will set the stage
for creating the amero as a North American currency to replace the dollar.


The reconstructed M3 data – the broadest measure of money –
published on econometrician Gary Kuever's website, NowAndFutures.com,
shows M3 increased at a rate of 11 percent in May, compared to 9 percent
when the Federal Reserve quit publishing M3 data earlier this year.

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."

Why is this important?

"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."

Meeting yesterday, the Federal Reserve Open Market Committee voted,
as Chapman had predicted, to hold the overnight lending rates between
banks steady at 5.25 percent. This was the fourth straight meeting the
Fed had voted not to change rates. In its rate announcement, the Fed
affirmed the economy had slowed..........Read More