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The billions of dollars in bailout money are now being used to purchase positions in commodities and tangible assets. The dollar is highly overvalued, particularly in light of the banking and industry bailouts, and it becomes clear that the massive injections of cash that were supposed to stimulate the economy will instead be used to effect a massive redistribution of wealth. Those who are now flush with cash will convert it to tangible assets before the dollar collapses. When people run for the exits vis-Ã-vis the dollar, it will be too late. The dollar will be abandoned, and its value will fall to a small fraction of what it is today. Those who cashed in their dollars for tangible assets early on will have done incredibly well. The transfer of wealth will have been accomplished. The first stages of this scenario are happening right now, as can be seen by the recent appreciation of precious metals to record values against the dollar. Six months to a year would not be an unreasonable time frame within which to expect a collapsing dollar, hyper-inflation here in America, and the accompanying catastrophic contraction in disposable incomes and savings. Americans will be caught in the cross currents of an unsustainable national debt and an over-expansive monetary policy.
