The dollar is under severe pressure because of a crisis of confidence in the U.S. government, the U.S. financial system, and the current U.S. attempt to address the financial-sector crisis. If the initiatives fail or drag on too long, the beneficiary will be gold. Yes, gold.

The dollar came under increasing pressure as the U.S. government rescued Bear Stearns, Fannie and Freddie, and AIG — and let Lehman go down the tubes to prove it knows how to spell "moral hazard." The institutions the government saved were too big to fail (TBTF).