Many moons ago I said that when the dollar comes under serious pressure the government might impose exchange control regulations, locking American citizens into a collapsing currency. You’ll remember that is what the Mexican government did when the peso collapsed some years ago.

If you are ordinary working person with just a few savings and you don’t travel much exchange controls would not affect you very much, but if you are in a more international scenario, now would be the time to review your dollar holdings and perhaps get advice about switching into the Swiss franc or the Euro. The Federal Reserve has recently been generating new dollars in secret, at high speed, and international currency dealers are well aware of that, it makes them nervous. Gold is almost at $700 an ounce, which tells you global investors are scared and quite rightly so in my view.

Here is an article that explains the dollar situation I think you’ll find it interesting.

How does a currency collapse? And the U.S. $?

© Stuart Wilde 2006
www.stuartwilde.com