Reply #10: I'm inclined to agree with you. [View All]

There's no doubt about it: the dollar is tanking. It's going to go down quite a bit over the next few months.

John Snow has made it clear he's watching the patient get sicker by the day. However, he's not going to do anything for a while yet.

You have to look at the underlying forces -- the Bush administration wanted this. They had many reasons for pulling the plug on the dollar. Steve Roach echoed this in his latest speech - he said it was a good thing for our current deficit and international currencies. So they want this, and they're not going to step in to support the dollar for quite a bit yet. If the currency starts to flat-line, then maybe they'll do something. Otherwise - no.

I personally think it's better to ride out the storm. At this point, it's probably not a good idea to invest in the Euro. Anybody that does will be one of those "Late arrivals" who sees a definite trend, and jumps on. They pay more than the person who invested a while back. Remember the old saying, "buy low and sell high".

I'm also not in favor of buying a lot of gold. Storage is a problem. If I do that, I'm assuming that our market is going to completely belly-up (it won't -- it'll just be a rough ride for a while). Now there's nothing wrong in buying maybe $2,000 worth of gold coins (you can buy them from a coin dealer) and stashing them in the family fireproof safe. Otherwise, don't sell your house to invest everything into precious metals. People did that in the late 70's and lost plenty.

Just stay cool for the time being. Try to catch trends on the upswing - like foreign currency, but try to be diversified.