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--- The US dollar collapse ---, Bush, this is the end...
post Nov 10 2004, 04:42 PM
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Protect your assets from a US dollar collapse

The US dollar has been weakening against the major currencies in the past week. Some analysts are beginning to wonder if this is not the start of a big correction to rebalance the trade deficit. But how can holders of US-denominated assets protect themselves?

Sell out of US assets while you still can, and buy precious metals! This might appear an extreme reaction to a few days of bad trading for the US dollar which is now at a seven-month low against the euro but devaluation is an invidious thing.

Just consider how much poorer you are if you have held on to US dollar assets since the year 2000. The dollar has moved from 82 cents to $1.26 to the euro and has lost 60% of its value against an ounce of gold.

Where you feel this most is as a traveler. The US dollar just does not buy as much in terms of hotel rooms and meals as it used to do. It also means that if you wanted to buy a house in Europe then you would get a much smaller one than in 2000 for the same money.

So if you are sat on a US dollar bank account bad luck! But it might still make sense to convert your savings into a currency or asset more likely to stand up to the pressures of devaluation.

Indeed, once the US Presidential Election is out of the way on November 2 economic reality will begin to close in on the USA.

The twin figure deficits (63% in 2003) are unsustainable, and that means the US economy will have to tighten its belt. This can be done by higher taxes and interest rates, or by devaluation, or more likely a combination of both.

The message is pretty simple nonetheless. US dollar deposit holders should consider shifting to safer currencies. Likewise holders of US stocks and bonds should liquidate them and move to a safe haven such as gold or the Swiss franc. For the honeymoon for the next US President in financial markets is likely to be very brief.


As I've had many occasions to say it on this forum, this is the end of the US Dollar. The time might have come for the USA to pay all the debts... but how to do so, with monkey money?

No need to be anti-American, but this was the true reason for the US to go rampaging Iraq ... to steal the oil.

Religions? Morality? Human Rights? Freedom of Press? Democracy? Read this long analysis, if you are able, and if you must understand the whole story behind of the short history of an all-fake America.

This post has been edited by Johannjs: Nov 12 2004, 06:55 AM
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post Nov 10 2004, 05:05 PM
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Once again. Bush is an idiot.
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Digital Insanity
post Nov 10 2004, 07:33 PM
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QUOTE (Jasel @ Nov 10 2004, 03:05 PM)
Once again. Bush is an idiot.

As in, he gave away tax cuts to everybody to the point that it was mainly focused to the rich.
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