Sunday, November 14, 2010

The Terminal Value Of The Dollar Is Precisely Zero.

From Marc Faber Blog.

The terminal value of the dollar is precisely zero, the printing cost of bank note that is the intrinsic value of the dollar. But it will not move there right away.

Since the formation of the federal reserve, in 1913, the price of gold has gone up from USD 25/oz to over US 1400/oz, In other words the value of a dollar bill has gone down by 97% in gold terms and it took more than a 100 years. Now the next time the value of the dollar declines by 97% won’t take a 100 years I think it will happen in 10-15 years.

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