I love the topic. I think we need to start talking about this. This is getting closer to reality every day.
The Fed minutes yesterday, said the economy could be in for a "Severe Downturn". That downturn could start as a recession and turn into a depression. The entire world is getting pulled into the downturn. Foreign markets are already down 20% this year and the realy bad news is still to come. I know ... doom and gloom.
If (or when) the foreign investors lose faith in the US markets, the dollar will sink like a rock in a river. The dollar is already at risk, which puts savers like us at risk. If dollars dropped in value by half and inflation gobbles up another x% per year, the savers could lose the most. A friend of mine does not own a home and has no assets and a steady income with his own business. He has nothing to lose, but I could lose a lot. So, I'm not sure who I would rather be, as we face the coming downturn.
Some say to invest in foreign currencies, but they are also losing value as their central banks are printing money to keep from losing against the dollar - is order to keep their economies from completely stopping. All equity markets and currenies are very risky right now, leaving the commodities to hedge against the dollar as the best choice to protect a saver wealth.
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Great subject
Submitted by Curt on April 8, 2008 - 18:22.
I love the topic. I think we need to start talking about this. This is getting closer to reality every day.
The Fed minutes yesterday, said the economy could be in for a "Severe Downturn". That downturn could start as a recession and turn into a depression. The entire world is getting pulled into the downturn. Foreign markets are already down 20% this year and the realy bad news is still to come. I know ... doom and gloom.
If (or when) the foreign investors lose faith in the US markets, the dollar will sink like a rock in a river. The dollar is already at risk, which puts savers like us at risk. If dollars dropped in value by half and inflation gobbles up another x% per year, the savers could lose the most. A friend of mine does not own a home and has no assets and a steady income with his own business. He has nothing to lose, but I could lose a lot. So, I'm not sure who I would rather be, as we face the coming downturn.
Some say to invest in foreign currencies, but they are also losing value as their central banks are printing money to keep from losing against the dollar - is order to keep their economies from completely stopping. All equity markets and currenies are very risky right now, leaving the commodities to hedge against the dollar as the best choice to protect a saver wealth.