China and Russia are Turning theirs Backs on the US Dollar

There’s going to be a point where countries will have to assess each of the currencies on their own merits. As you know, I live in Canada, and I can assure you that when I look at the data that the U.S. supplies, the dollar will lose a lot of value. I am sure that countries like China and Russia would look at the same data and come to the same conclusion.

China and Russia look like they could already be turning their backs on the dollar. Brazil and India have complained about the printing of money and the disastrous effects on currencies. They could also be turning their back on the dollar.

I am not so sure that the dollar will remain in the same high esteem as the market has historically given it.

In the broad stock market, things have not started to change just yet, but we are starting to see some cracks appear. Housing numbers have been quite weak. We’ve seen tech stocks come under attack. Some of the major banks have warnings on their trading levels going forward. Those stocks seem to be breaking. So the generals are coming under pressure.

I’m not sure when a decline will start happening, but I feel safe in predicting that within 24 months, the value of these stocks will be much lower than today. I don’t think it’s nearly as safe as the banking interests would tell you.

- Source, Eric Sprott