Sunday, October 20, 2013

Now American Commentators Are Suggesting That The World Abandon The Dollar--Are They Crazy, It Would Severely Damage Our Economy!!

Jim Cramer: Abandon the Dollar Now, US Is 'Laughing Stock'

Friday, 18 Oct 2013 08:11 AM
By Michelle Smith
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As the world laughs at Washington's antics, CNBC's Jim Cramer says smart money should look for any possible means to flee the dollar.

The United States is "a laughing stock around the world, maybe worse than Italy in some ways when I look at benchmarks," he said on Squawk Box. "We have obviously lost the faith of a lot of countries."

If there is a way to take your money out of this country, Cramer suggests putting it in Germany. If he were in the shoes of China, Kuwait, Brazil or Japan, "I would do it immediately," he claimed.


Some may say it sounds outlandish, but Cramer pointed to the United Kingdom during the Suez Canal crisis.

"The United States said, 'we're going to pull our money out of the sterling,'" he reminded his colleagues.

The Suez crisis is considered a major milestone in global history. It is said to have resulted in the demise of the imperial influences of the United Kingdom and France and to have solidified the United States' position as a world leader.

Cramer expressed belief that there could be stark similarities to what is occurring now.

"I believe this is the de-Americanization that a lot of the Gulf States and Chinese are saying behind the scene," he said, adding that the dollar index reflected just that on Thursday.

"This is a good opportunity — between now and the next wrangle — where you can find a safe haven. Whether it be gold, whether it be the euro or whether it be, frankly, the Chinese currency," Cramer argued.

"The Chinese do not squawk. The Chinese do not complain," Cramer proclaimed in defense of his suggestion.

He pointed to gold's performance. Prices soared over $30 an ounce during the trade on Thursday. "Obviously" someone was putting money into the metal instead of the dollar, Cramer noted.

The world believes the US has basically "lost control," he said.

"The only thing we have going for us is that we have a very liquid market," Cramer said of the United States. But he pointed to a common criticism of that single bright spot — the liquidity is likely because "the Federal Reserve is in there buying every bond they can right now."

"In a nutshell, we are back to business as normal where the U.S. government spends way too much money; which we have to borrow on the global market. We have no realistic way to pay it back and even with a 'shrinking' rate of deficits, the situation is not sustainable," Jeffrey Wright, managing director at H.C. Wainwright LLC, toldMarketWatch.

"Gold is the natural vehicle to counterbalance this behavior and is going higher once again," he added.



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