another point of view about dolar..interesting..
http://www.dailymarkets.com/economy/...sed-to-answer/
Mark Skousen: “I note that foreign central banks like Bank of India and Bank of China are now buying tons of gold. Is this a sign that foreigners are losing faith in the dollar-based world monetary system?”
Ben Bernanke: “The world financial system is sound.”
What struck me about Bernanke’s responses was his “What, me worry?” attitude. He showed no concern about the constant loss in the value of the dollar on the foreign exchange markets, or about the dramatic rise in the price of gold since he became chairman.
I came away from this meeting having reached the following conclusions: Don’t count on the Fed chairman - or any other high government official - to admit mistakes or tell us what is really going on. No doubt many Americans share that view, too.
My advice: As long as the Fed’s Zero Interest Rate Policy (ZIRP) is in place, the following three scenarios will play out:
http://www.dailymarkets.com/economy/...sed-to-answer/
Mark Skousen: “I note that foreign central banks like Bank of India and Bank of China are now buying tons of gold. Is this a sign that foreigners are losing faith in the dollar-based world monetary system?”
Ben Bernanke: “The world financial system is sound.”
What struck me about Bernanke’s responses was his “What, me worry?” attitude. He showed no concern about the constant loss in the value of the dollar on the foreign exchange markets, or about the dramatic rise in the price of gold since he became chairman.
I came away from this meeting having reached the following conclusions: Don’t count on the Fed chairman - or any other high government official - to admit mistakes or tell us what is really going on. No doubt many Americans share that view, too.
My advice: As long as the Fed’s Zero Interest Rate Policy (ZIRP) is in place, the following three scenarios will play out:
- The U.S. dollar will remain weak.
- Gold prices will rise.
- Foreign stocks will perform better than U.S. stocks.
And if you’re wondering how to combat this, consider these three investments:
- SPDR Gold Shares Trust (GLD: 106.59 +0.062 +0.06%)
- iShares Silver Trust (SLV: 15.9693 -0.2907 -1.79%)
- Templeton Emerging Markets Fund (EMF: 17.91 -0.2199 -1.21%).
When trend line was broken from that to the first red
