Please check out this special series of articles, hosted by the Fiery Alex Jones at his site Infowars.com.
I fear that economic instability of the first order is just around the corner, and you and I need to prepare for the worst, while always hoping for the best.
I plan on doing some analysis of the situation, and posting my thoughts on this here blog.
In the meantime, stay informed, stay in touch with your financial professional, and DIVERSIFY your assets. A little gold or silver in your holdings never hurts.
HOLD ONTO YOUR HATS, Ladies and Gentlemen.
Check this article from Market Oracle:
... Saudi Arabia Just Says "No" To the Fed's Rate Cut
Saudi Arabia's currency, the riyal, has been pegged to the dollar since 1986. In other words, the two should trade in tandem based on a fixed exchange rate (3.75 riyals for every dollar).
And as I explained a moment ago, interest rates affect currencies. Thus, when a currency is pegged to another, the two countries involved need to follow parallel interest rate policies.
That's why yesterday's news — that Saudia Arabia decided not to cut its interest rates — was a shock. Apparently, the Saudis are worried that enacting rate cuts would just bring more inflation into their economy.
Now, many market watchers are worried that the country is considering breaking the dollar currency peg altogether. What would that mean? It means that …
#1. The Saudis could start selling their massive stash of dollar reserves.
If they were to abandon the dollar peg, the Saudis would no longer need so many greenbacks. They would have every incentive to reduce their dollar holdings to avoid losses. And they would have every reason to trade those dollars for other currencies such as euros and pounds...
And, dear readers, the dollar is the Achilles heel of the U.S. economy, which is already bankrupt as I type this.
Please see more of my writings on the subject here.