Get Rid of your Dollars Today

After Ben Bernanke's comments on Monday, in which he stated that the Fed sees no bubbles forming, inflation is under control, and we can forget about interest rates being raised anytime soon, you would have to be crazy to hold dollars in any significant quantity. This expert analysis comes from the same institution that failed to prevent the technology stock bubble of the late 90s, and the recently popped real estate bubble. Bernanke's comments mean the dollar will continue to fall, gold and other commodities will continue to increase (in dollar terms), and you can be rest assured somewhere people are borrowing cheap dollars and using them to pump up a market. For the foreseeable future, Americans can expect the purchasing power of their savings to decrease, and their savings account interest rates to be next to nothing. While Obama tours China extolling Americans to save more, the Federal Reserve continues to do everything in its power to encourage Americans to spend as fast as possible.

Make no mistake about it, Americans need to save more, but not in 0.5% interest rate savings accounts full of dollars. Americans need to wise up and prepare for the inflation bonanza that is coming sooner rather than later. While it is, of course, prudent to keep a several month supply of cash in a savings account should an emergency arise, the rest needs to be traded in for hard assets as soon as possible. With commodity backed ETFs, like GLD and SLV, that trade like stocks, it is easier than ever to reap the benefits of owning real money without the headache of having to store it. Don't believe Bernanke. Get rid of your dollars before it is too late.