Hmm... I thought the US could shut its borders and not have anythign to do with any other country and get along quite well. Isn't that what the isolationists claim?
What? The US actually *needs* the rest of the world? -Gel -----Original Message----- From: Gruss Gott There's been a few threads about the dollar decline. Here's a preview of a great piece on it: -------------------------------- Dollar's Decline Is Reverberating Sun Nov 14, 7:55 AM ET Los Angeles Times By David Streitfeld Times Staff Writer During a routine sale of U.S. Treasury bonds in early September, one of the essential pillars holding up the economy suddenly disappeared. Foreigners have been regularly buying nearly half of all debt issued by the U.S. government. On Sept. 9, for the first time that anyone could remember, they stayed home. "Thoughts of panic flickered out there," said Sadakichi Robbins, head of global fixed-income trading at Bank Julius Baer. The foreigners returned in force at the next Treasury auction, and Sept. 9 was quickly dismissed as an aberration. But the episode demonstrated how much the U.S. economy is dependent on other countries to bankroll its free-spending ways. http://story.news.yahoo.com/news?tmpl=story&cid=2026&ncid=2026&e=2&u=/latimests/20041114/ts_latimes/dollarsdeclineisreverberating ---------------------------------- To clear up a few questions people have asked me: I'm holding Euros because of the weak dollar of course, but mostly because my wife and I keep cash handy in case of an emergency and it's a small hedge. That is, we don't consider the Euro our investment necessarily, just a higher value way of holding the cash. (this is what Everbank.com is handy for) If you don't do this, but still want to protect yourself from a dollar "hard landing", then try an unhedged (for the dollar) foreign mutual fund with a low exposure to America. Vanguard's International Explorer is an example. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Special thanks to the CF Community Suite Gold Sponsor - CFHosting.net http://www.cfhosting.net Message: http://www.houseoffusion.com/lists.cfm/link=i:5:135849 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
