The Little Book of the Shrinking Dollar: What You Can Do to Protect Your Money Now

Chapter Twelve

Tips on Surviving the Next Crisis

Even More Solutions

The fed has tried everything it can to seduce you into buying stocks. But is America taking the bait? This could be an early sign of investors losing faith. Over the first 11 months of 2011, plain-vanilla savings and checking accounts attracted eight times the money that stock and bond mutual and exchange-traded funds did. That’s according to data from market research firm TrimTabs.

More money went into bank accounts—even at times when the market rallied. Most recently, investors took $9.35 billion out of equity funds—including more than $7 billion of U.S.-based funds—for the week ending January 4. Should this kind of action escalate, expect the central bank to really panic. Problem is, they’re at the end of their rope. They can’t cut the interest rate below zero. They can’t do anything but more money printing—the exact thing that destroys monetary confidence once and for all.

How bad will it get?

The man who broke the Bank of England in 1992, George Soros is sounding the alarm. While it’s not the death knell for the dollar, this billionaire is warning that the current Eurozone crisis holds more danger than 2008.

“The three biggest challenges to the U.S. economy are the Republicans, the Democrats, and the people who voted for them. They have destroyed the dollar with generations of welfare/warfare spending, and killed the goose that laid the golden egg of American prosperity with their statist economic policies.” ...