By Kevin McElroyNEW YORK (
It's not a situation that can last forever, or even very long. Why? Well, to belabor the point, you can't put paper dollars into a diesel truck to run the engine to deliver strawberries from California to Chicago. You can't turn paper dollars into plastic to wrap around strawberries. You can't squeeze fertilizer out of paper dollars to grow those strawberries either. More to the point, you can't create enough ones and zeros in a Federal Reserve computer to trick the universe into believing that an idea about moving a ton of goods across the world is the same thing as actually doing it. I know, I know: they have really fancy computers at the Federal Reserve. Their ones and zeroes are arguably some of the best ones and zeroes ever conceived by man. They are certainly better than European ones and zeroes. But ones and zeroes necessarily can't put bread on the table for very long. Not unless they're backed by actual resources, output, labor, energy, etc. that actually exist. The dollar is frequently referred to as the tallest midget in a room full of midgets. But oil is a giant and the dollar can't win. So my advice is to trade in your dollars (which become more and more worthless every year) and get yourself access to energy securities, physical gold and silver, agriculture securities, and gold and silver mining companies. As much as possible, you want to shield yourself from the effects of the collision between the dollar and oil. Even if five billion people don't die, it's still going to be a bumpy ride for people who bet on the dollar against oil.