There is a risk in holding cash in an environment of asset price inflation – a condition that usually occurs when governments create large fiscal deficits and inflate the money supply.
November 12th, 2009 | Dr. Marc Faber | 2 comments | ContinuedAll Posts Tagged With: "currency"
The Only Thing Really Going Down Right Now is the U.S. Dollar
Okay. Who put the financial world in a time machine and took us all back to 2007? Seriously. Oil traded above $80 overnight. Gold is hovering near $1,060. Stocks are up. Bonds are up. The Aussie dollar is up. Will anything ever go down again?
October 21st, 2009 | Dan Denning | 2 comments | Continued
Aussie Dollar Ready to Storm Past US Dollar
Yesterday’s episode of the Daily Reckoning left off with the question of whether 5,000 was in sight on the ASX 200. The answer today is that it is just over the horizon. The index closed up 2.3% to 4,695. The more investors thought about the recovery/China/demise of the dollar story, the more they liked buying stocks (especially gold stocks).
October 8th, 2009 | Dan Denning | 26 comments | Continued
An Abundance of New Money that Will Destroy the Dollar’s Buying Power
The importance is dependent on your perspective. Those people who are not borrowing money to spend are thus suffering the pangs of a lowering of their lifestyle, which depended on borrowing money to spend;
September 29th, 2009 | Mogambo Guru | 1 comment | Continued
US Dollar is Getting Trashed
“In other words, leveraged speculators are borrowing US dollars in the short-term money markets at near-zero rates to buy bonds in higher- yielding currencies like the Australian dollar or the euro.
September 29th, 2009 | Bill Bonner | 7 comments | Continued
Is Gold Going Up Because People Fear Inflation?
We began having doubts about the ‘feds inflate…gold soars’ hypothesis last year. It was too easy…too obvious. And if it were that easy to inflate a nation’s currency, how come the Japanese couldn’t get the hang of it…
September 24th, 2009 | Bill Bonner | 0 comments | Continued
US Dollar Declining as China’s Currency Rises
“We may now be entering the Asian century, dominated by a rising China and its currency. This decline of the dollar might take more than a decade, but it could happen even sooner…
September 23rd, 2009 | Bill Bonner | 5 comments | Continued
The Pound is in Trouble
“Reason #3: Industrial production in the United Kingdom has maintained double-digit losses since January: -12.1%; February: -12.7%; March: – 12.6%; April: -12.4%; May: -11.9%; June: -11.1%. Without production, nothing sells. No sales.. no income. No income… no jobs.
August 31st, 2009 | Bill Bonner | 3 comments | Continued
In a Bear Market Most Stocks Go Down, So What Do You Do?
But the stock market is not a television show or a graphic novel. It does not have a tidy beginning, an enthralling middle, and a miraculous end. Attention spans are short these days. People expect instant resolution. But the unwinding of a credit boom doesn’t work that way, especially when you have central banks and governments fighting it every step of the way…
August 31st, 2009 | Dan Denning | 31 comments | Continued
What Assets are Going to Beat Inflation in the Coming Ten Years?
Last night was trivia night in Elwood. Your editor sat across from Australian Wealth Gameplan editor Kris Sayce. Between questions about how many venomous snakes there are in Australia and whether New South Wales is larger than South Australia (it’s not), we found the time to query him about whether buying inflation indexed bonds from the Australian government was a good investment strategy.
August 14th, 2009 | Dan Denning | 3 comments | Continued