Fed easing may mean 20 percent dollar drop

(Reuters) - The dollar is in danger of losing 20 percent of its value over the next few years if the Federal Reserve continues unconventional monetary easing, Bill Gross, the manager of the world's largest mutual fund, said on Monday.

"I think a 20 percent decline in the dollar is possible," Gross said, adding the pace of the currency's decline was also an important consideration for investors.

"When a central bank prints trillions of dollars of checks, which is not necessarily what (a second round of quantitative easing) will do in terms of the amount, but if it gets into that territory --- that is a debasement of the dollar in terms of the supply of dollars on a global basis," Gross told Reuters in an interview at his PIMCO headquarters.

Reuters


could this be the already announced collapse of the dollar?

Prediction (NOT SUPERNATURAL JUST MY PERSONAL GUESS):

The US Dollar will "collapse." World currency will be introduced to replace it. The Obama administration has stated out right that they will not "rule out" a one world currency.

To support my theory:
www.washingtontimes.com...

Treasury Secretary Timothy F. Geithner and Austan Goolsbee, member of the Council of Economic Advisers, have refused to rule out a global currency. Such views by top policymakers cause the dollar to drop. Even worse, this shows that the Obama administration supports dramatically greater centralization on a national and international scale.