The Fed and Treasury are doing untold damage to the US economy and the dollar with their unprecedented bailout spending, says Martin Hutchinson. That’s why there will soon be a stampede to the exits from the Treasury bond market. Martin gives four ways for investors to prepare for the coming crash.

Stocks are up 20% from their November lows. And they could go much higher. But don’t be fooled by this “sucker’s rally”. The Dow is on its way to 5,000. The Fed is trying to stop it. But remember, the Fed caused this crash. And it was government ‘rescues’ that made the 1930s Depression so Great…

In forex trading, there has to be a winner for every loser. John Crooks says the US dollar is set to be “king of the hill” in 2009. He says forex traders don’t care about the damage being done to the US economy. The greenback has become a “safe haven” for investors rushing into cash. And that trend isn’t about to change anytime soon.

The government is banking on the American consumer to rescue the economy. But debt-ridden households have had enough, says Andrew Gordon. He says the government’s massive bailout are benefiting very few in the short-term. But the long-term consequences will be felt by all.

It’s abundantly clear now that too much borrowing and spending in recent years is at the core of the current economic crisis. But what perplexes Bill Bonner is that government policy still assumes that more of the same is the only way to get us out of this mess. And Wall Street is only too happy to go along with it…

China’s economic rescue programs could be devastating for American investors, says Manraaj Singh. The country is sitting on $2 trillion in US dollar reserves. And it will likely sell a large chunk of this to fund its domestic bailout.  Manraaj says this makes US dollar-denominated investments a ticking time bomb.

Gold bugs have suffered one of their worst years in history, says Keith Fitz-Gerald. But the US dollar looks increasingly fragile beyond this period of short-term panic buying. And that means the outlook for gold remains strong. Keith says every investor should ensure gold forms part of their investment strategy for 2009.

If you’re thinking of getting back into stocks, it’s better to arrive late than too early says Ben Traynor. Yes, losses this year have been spectacular. And the temptation to bargain hunt is strong. But Ben says investors should remember that they still have a once-in-a-lifetime opportunity to lose a lot of money very quickly.

Reckless government spending has already put the US taxpayer on the hook for trillions of dollars, says Eric Roseman. And there is no telling how many more bailouts and loans are to come. Eric says gold will emerge as a surrogate currency as the Fed prints the US dollar into oblivion. And that means a sharp return to its long-term bull run.