.When I watch Chairman Bernanke, Secretary Geithner and Mr. Summers on TV, read speeches written by the Fed Governors, observe the “stimulus” black hole, and think about our short-termism and lack of fiscal discipline and political will, my instinct is to want to short the dollar. But then I look at the other major currencies. The Euro, the Yen, and the British Pound might be worse. So, I conclude that picking one these currencies is like choosing my favorite dental procedure. And I decide holding gold is better than holding cash, especially now, where both earn no yield.
This is my thinking as well.When folks are righting off the $US,I ask against which other currencies and against which other countries?
The bigger question then becomes,which countries are best equipped to deal with the massive,massive problems that we face in the future and this is where the USA wins hands down.
The USA is the leanest,meanest most competitive first world country on the planet.
They also are the most powerful.
They will make the rules as they go to suit themselves.
Thats what power is all about at the end of the day.
Millions of Americans have no health care? Cry me a river.
Millions of Americans working for minimum wage? So what.
When push comes to shove and everyone has to compete for survival,the USA will be front row centre.
I would be far more concerned about how we are going to survive if things get really brutal.
We have a very soft underbelly in this country imho.
