1. The U.S. dollar is positioned to decline substantially over the next year. The fundamentals driving this trend are the U.S. governments continued “quantitative easing,” or money printing.
2. The U.S., like other countries earlier in history, is operating under a ‘fiat’ currency regime, with nothing to back up its actual value. No Gold standard, etc.
3. Unemployment will not recover in 2010. Rather, it will flatline in the ‘jobless recovery’ that has become the conventional wisdom or “new normal” among many observers.
4. Countries like China that hold enormous U.S Treasury reserves are desperate to unload their holdings, or at least, minimize their exposure to their existing dollar holdings.
5. The sustained rally in gold will hold in the short term, while the likelihood of a massive rally in sync with a sharp and sustained decline in the U.S dollar is in the cards for the long term. (More Here)

While these bearish calls have been heard before, and the recent rally has confounded many of those who have foreseen doom and gloom, the fundamentals make sense to me. The U.S. government is printing huge amounts of money. According to economics, such a drastic increase in the money supply will result in inflation and a loss of value for the dollar. Moreover, the Chinese, Japanese and Gulf States are not idiots and will not continue to buy U.S Treasuries.

Going forward, assets like precious metals and commodities seem to be the best options for investors because “the fundamentals are unimpaired,” as Jim Rogers likes to say.The fundamentals of the U.S. Dollar and even the U.S. government are impaired, just like AIG and Citigroup.

At this point, it is important to take appropriate measures in a timely fashion.