HaavBline

How to Play the Dollar's Approaching Descent

Without a doubt, US is still a great place to live and enjoy.

'Work': if you have one, usually is better than most other place. Job availability and security will continue to be chellenging.

'Innovate': With heavy debt and heavy borrowing just to keep going, funds needed to nurture innovation may go elsewhere.

'Prosper': That would be chellenging. Face it, we are all going to have heavy tax burden. The trillions of dollars spent on bail-outs and stimulus programs in order to keep failed corporations alife will have to be paid by all tax payers.

On Jun 18 03:32 AM Sovestor wrote:

> We consider undervalued high quality US assets are simply too attractive
> to pass. To buy/invest in US assets, cash-rich foreign investors
> will continue to need USD. US is still fundamentally a great exciting
> country to live, work, enjoy, innovate, and prosper. Even many Europeans
> and Asians like to live in the US. We are bullish on US economy,
> US markets and US Dollar in the long-term.

Russia, China Gang Up on the Dollar

You got the cause and effect totally wrong.

Both China and Russia (and Japan, among others) have heavy exposure to US Dollar denominated assets in their FX reserve. On the other hand, American and European FX reserves are heavy in gold.

It makes no sense for China and Russia to bash the Dollar and devalue their own FX reserves. The Chinese also stand the lose crucial exports.

It is the Dollar's precarious fundamentals and irresponsible quantitative easing policies that id driving down the dollar and making China and Russia suspect that the US are leaving them holding them holding the bag.