The crash we saw in the stock market during the past few weeks is nothing compared to the crash we are about to see in the Dollar.

Unfortunately, everybody in the government and media is too focused on current problems… they don’t have the foresight to see what problems are about to come next.

Everybody panicked and sold their stocks… and now they are hoarding Dollars. They escaped a hurricane but are now in the path of a tornado.

The hoarding of Dollars has created a temporarily strong Dollar… which is giving cover for Bernanke and Paulson to create as many Dollars as they want out of thin air to inflate the marketplace with liquidity.

If a publicly traded company was diluting their stock at the same rate as Bernanke and Paulson are diluting the Dollar… the stock would be trading for subpenny.

If your doctor was diluting your medicine or your farmer was diluting your milk, you would be outraged… wouldn’t you?

Just because we haven’t seen a run on the Dollar up until now, doesn’t mean it isn’t coming. It is coming… and it will happen very soon.

Most Americans don’t think it is possible for the Dollar to collapse. Some Americans think Dollars are still backed by Gold. It is this false trust and confidence that is keeping the Dollar propped up for now.

This trust will quickly evaporate. How could you trust a currency when the treasury secretary of the country is injecting $10 billion of this newly printed money into Goldman Sachs, his former company?

Now the Democrats in Congress want a new $150 billion stimulus plan. I told you before the first one was passed that it would be a disaster… and send prices of food and fuel through the roof. We had $5 a gallon gas by the time the checks arrived.

A stimulus is a direct injection of inflation… where you don’t have to wait to feel the effects. The $700 billion bailout will take a few months to work its way through the system… but combined with a stimulus we could see a perfect storm.

I profiled nine Gold and Silver companies as stocks to watch on Saturday, the most new stocks to watch I ever announced in one day. I gave DROOY a speculative rating of 1, my highest level of confidence. DROOY has been in business since 1895.

If you look at its long-term chart, back in 1979-1981… DROOY made a run from $15 to over $500 in less than two years. Another run like this for DROOY and several other of my new stocks to watch… is not only possible, but likely… if Gold prices skyrocket like I expect.

Hopefully those who doubted me in 2005 when I said to get out of Real Estate, will trust me now when I say to get out of the Dollar. Commodities will be the new hot asset class to invest in… and Gold will lead the way.

It is amazing how Bernanke and Paulson were able to scam America into believing the $700 billion in “illiquid” mortgage-backed securities they are about to purchase, will somehow be resold in the future to recoup the money or potentially even make a profit.

If a homeowner stops paying their $400,000 mortgage, instead of the bank foreclosing on the home… they will simply sell the mortgage to the government. A year later, the government will call the borrower and offer to reduce the mortgage to only $200,000 and refinance it at a 30-year fixed rate… allowing them to stay in the home.

If all these borrowers pay their new reduced mortgages, it is theoretically possible the government could recoup $350 billion of the $700 billion over the next 30 years.

What these Congressmen are too stupid to realize is… the millions of responsible Americans who are paying their mortgages on time… will realize they can get their mortgages cut in half too if they only stop paying. Therefore, the $700 billion in bad mortgages will quickly multiply to as much as $3 trillion.

At this point… everybody will rush to max out their credit cards and not pay any of that money back… which will add another $1 trillion. Of course, nobody will pay back their student loans either.

So while the intention of this bailout was to get credit flowing again, it will have the complete opposite effect… and destroy what is left of the credit market.

The dow dropping another 600 points today is a painful reminder that Ron Paul was in fact correct about the consequences of our monetary policy.