Dear A.M. Costa Rica:
I was reading the lead article on the expats’ advice on hard assets, and I’m wondering how on top of things is he ?
Yes, Costa Rica is a financial disaster, and Greece is in the headlines, but the worst kept secret is that U.S.A. is in worse shape, and the Federal Reserve is in more danger than any institution on the planet.
I agree with the authors suggestion to switch to hard assets and wish I didn’t have colon CDs, but, I surly wouldn’t switch into U.S. dollars. Why ? The Federal Reserve is leveraged at 77 to 1 and by this time next year the Chinese Yuan will be 25 percent of the International Monetary Fund’s special drawing rights. This will basically begin the end of the U.S. dollar’s reserve status and the Monetary Fund, which has a leverage of only 3 to 1 may take over the world’s reserve function..
Combine this with the newly created BRICS world bank and the U.S. dollar is in more danger then the colon. James Rickards (an ex-CIA analyst) recently published a fantastic book that Sen. Rand Paul read parts of on the Senate floor. He points out that the end of the U.S. dollar reserve status has been planed. We all know that Treasury Secretary Timothy Geithner went public with Christine Lagarde, the Monetary Fund’s managing director, by his side almost five years back and said the end needs to be managed and he wanted at least 20 years. Now five years has passed, and Mr. Rickards comments point out that that 20 years is too far out, and he presents solid evidence the plan is much sooner.
This will soon rock the U.S. markets and shave at least 30 percent off the dollars value. he suggests the much hated euro is much safer, and his logic is sound. It isn’t leveraged and will soar to its historic heights. I strongly suggest that Costa Rica’s expats move into the euro over the U.S. dollar. It is quite fortunate that Costa Rica’s banks offer euro-denominated accounts and that the current Greek situation has driven down the euro.