From Chart of the Day:
Thanks in part to mounting US deficits and a weak US economy, the US dollar continues to trend lower. After all, a virtual collapse of the banking sector does have its consequences. For some perspective, today's chart illustrates the current trend in the US dollar (blue line) as well as that other world currency, gold (gray line). As today's chart illustrates, the performance of the US dollar has varied inversely to that of gold since the latter stages of the credit bubble. It is worth noting that the US dollar is currently testing resistance of its downtrend (red line) while gold makes record highs.
Today's Quote:
Revelation 3:18 Douay-Rheims Bible
I counsel thee to buy of me gold fire tried, that thou mayest be made rich; and mayest be clothed in white garments, and that the shame of thy nakedness may not appear; and anoint thy eyes with eyesalve, that thou mayest see.
Conclusion:
Hold US dollars if you like, but be prepared for a revaluation of the currency. Precious metals are not easily duplicated in longevity or authenticity.
PW, what effect will Dubai defaulting on its debt have on the dollar and other currencies? What is your opinion on Dubai defaulting on its debt?
ReplyDeletePW, do you see Greece defaulting on its debt as well? What is your opinion of Greece? Thank you for your excellent website.
ReplyDeleteI am currently working on a post to address both these questions.
ReplyDelete