2006-12-17

The Demise of the Dollar... and Why It's Great For Your Investments by Addison Wiggin (2005)

This short book regurgitates the obvious, starting from the discussion on "fiat" vs. gold backed currency, through the faulty policies of the (banking cartel) Federal Reserve and the trade and budget deficits, showing how the once mighty US dollar is destined to fall. And maybe it is already losing its value faster than it can be seen from the official statistics, as inflation numbers maybe underestimating the real inflation by about 2%. Basic investment options are offered to take advantage of the demise of the dollar, including purchasing foreign currency (likely Euro) or currency options, buying foreign securities, and purchasing gold and gold producers. The problem with this book is the same as with the quoted Prechter's Conquer the Crash, while we can see how this can be applicable and partially unfolding, without exact timing this is no help to investment success. Unless timed perfectly, implementing the suggested strategies would likely be detrimental to your financial health (and this includes buying foreign securities which is the least "speculative" choice), if the dollar happens to strengthen during your holding period.

No comments: