Reply to Thread

Message:: [QUOTE="desertgem, post: 1057180, member: 15199"]I am not sure what everyone is using as a comparison of the "devaluation" of the USD. Generally it would be comparison of the USD with other currencies such as the Euro and the "currency basket". But if you look back on a 10 year chart of the EURO/USD ratio, it would be hard to decide which a person would want for the future if they had a choice. There is no clear cut winner, as both have had peaks and valleys, IMO, the Euro much more in 2002 and 2006,  and currently, I see it getting worse before better compared to the USD. I had my doubts also, as the idea of "USD Devaluation" started hard when the US was trying to get us out of the financial difficulty, and we assumed everyone else was better off, especially in Europe. I do not buy that any longer. I doubt we even have 5% of an idea what China's financial situation is, and that is the "bomb" I fear in the next few years along with the European problems. I would instead wonder what a stronger dollar will do to precious metals, interest rates, and inflation. Not hyper inflation, but in gasoline, other energy, food, base metals, etc.  Maybe I am one of the few who thinks the Government and the Fed Res. hit it as correctly as possible, considering all of the unknowns Jim[/QUOTE]