Seeking Alpha

Living4Dividends'  Instablog

Living4Dividends is an individual investor.
  • The World's Biggest Money Printer  0 comments
    Oct 21, 2009 09:22 AM
    he USD still remains the leading reserve currency ( is the most widely held). However, central bankers are slowly decreasing their dollar holdings.

    In a crisis, people flee to the dollar. This was true in past crises, but I am doubtful it will remain true going forward.

    Because nearly every country is printing currency like its going out of style, NO fiat currency is a safe form of holding wealth. Fiat currencies have always been risky. They have become even more risky since the global flood in liquidity. The dollar is vulnerable to devaluation, but so is the Pound and Euro. Putting 100% of one's wealth in Dollars is very risky.

    As a side note: Due to rampant printing, money supply has exploded in the Dollar and Euro and Pound at roughly the same amounts (within 10%). That having been said, due to rampant growth in Federal Debt, I think that the Dollar is fundamentally weak.

    Who is the biggest printer of them all ?

    Surprisingly, it is the Chinese. They have had the largest recent increase in monetary base of all the important currencies. By far, China has printed more currency and has expanded its monetary base much more than the Western Economies.

    Surprisingly, the Yuan still remains undervalued and China is experiencing 6-7 % deflation. If the Brits, Europeans and/or Americans printed money like the Chinese, we would almost certainly experience high inflation.
Back To Living4Dividends' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Full index of posts »
Latest Followers

StockTalks

  • GBP/USD 1.6473
    Dec 06, 2009
  • EUR/USD 1.4872 + 0.0015
    Dec 06, 2009
  • Dow 10,388.90 +22.75 +0.22%
    Dec 06, 2009
More »
Posts by Ticker

Latest Comments


Most Commented
  1. SDRs ? Gold Standard ? Forget About It ! (11 Comments)
  2. MORE POWER TO THE FED Brad Seltzer writes about the Federal Reserve (8 Comments)
  3. Jonathan Bernstein counters the counter-arguments raised by dollar bulls: (8 Comments)
  4. Obamacare: a bonanza for health insurers (7 Comments)
  5. The Correlation Between Dividends and Return on Equity - by: David Templeton May 19, 2009 (6 Comments)
Posts by Themes
Banking, Banks, Bonds, China, China Stocks, Commodities, Dollar/Currencies, Economy, Emerging Markets, Energy, Energy Stock, GLD, Gold, Gold Precious Metals Stocks, Gold Price, Government Policy, Homebuilders, Housing Real Estate, HY, Income Investing, Inflation, Inflation , IPE, Long Ideas, Market Outlook, Market Strategy, Oil, Oil Price, Precious Metals Stocks, Real Estate, Sector ETFs, Silver, SLVBonds, Stocks, TIP, TLH, Trading Ideas, Treasuries, TUZ, US Market
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.