Been reading alot of articles predicting this to happen. The USA is making so many enemies that every other country can't wait to ditch the USD as the world's reserve currency. The latest development is this from Zerohedge.
Basically for many years now, the US government has been borrowing so much money that it has had no choice but to keep printing money (since March 2009) to keep the global cogs running. As things currently stand, it can't go broke as long as it keeps printing money (USD) right? Well, at some stage, the creditors (almost every other country) is going to figure that out. They are going to figure out (if they haven't already) that as more and more USD pours into the financial system, the US government will simultaneously do all in its power to prevent other major powers from valuing its currency too highly against the USD, since that leads to inflation in the US. It will just try its best to make every exchange rate as status quo (as now) as possible. And while some may choose to fight by releasing QE of their own, others are seeking alternatives, like dealing in other currencies.
And that is why, the US stock markets are rallying to new highs every day!
One day, I think, the USD will be but part of a few 'major' currencies accepted worldwide as the reserve standard.
So how?
Well, I believe we retailers need to start shifting our funds into other asset classes. Even holding our funds in SGD is risky because as we know, the MAS currently pegs against a basket of currencies, of which the USD makes up a substantial part of.
IMHO, the best options are: gold, silver, property, RMB, AUD, EUR
Some analysts are actually predicting that gold will hit $5,000 against the USD!
Wow.
Stay safe.
No comments:
Post a Comment