Don’t look now, but the “waterfall” dollar just recorded its largest month-on-month advance against the euro since November of last year. The Nosferatu greenback got an adrenaline boost following announcements that the Fed and four other central banks would provide 90-day dollar loans to banks in order to make sure that they have sufficient amounts of currency on hand through year-end. See the Fed as lender of last resort. See the dollar as currency of last resort. Patience among folks such as Ron Paul is running out. Patience among dollar-mortician hard money newsletter writers has long ago run out.
But, hey, there is real hope now for the demise of the dollar. Yes, you read it correctly: the good old greenback is possibly about to meet its maker and die a slow, quiet death. Possibly. The reason? Not what you think: not the “unsustainable” debt-loads, not the “drunken sailor spending” by the “Gubmint,” not the “24/7/365 running of the Obama printing-press,” etc.
No, the reason is that the dollar (the bill, that is) simply costs too much to keep it alive. New efforts are once again underway to replace the paper bill with a less costly, more durable (by a long-shot) metallic version: the Dollar coin. And, guess what? Despite the memory of what happened the last time a dollar coin was introduced with largely the same aims, the American public is 65% in favor of killing off the paper buck.
Take a cue from us Canucks, eh? We did it, and so can you. Life with coins (nice, long-lasting, shiny ones, as made by the Royal Canadian Mint) is perhaps a pain in the pocket but not a pain in the…hind quarters. The $3 to $5 billion in annual savings might just be worth it, especially at a time when y’all are seeking to cut-what?-$1.5 trillion from your deficit. Bye, George.
Until tomorrow, hang on to that buck as tightly as you can. Or, turn it in for some palladium (now) on sale.
Jon Nadler is a Senior Metals Analyst at Kitco Metals