Lemain
regular
Reged: 31/01/2004
Posts: 5539
Loc: Fiumicino canal (Rome, Italy)
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Re: Best currency after leaving europe
25/04/2008 00:08
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The honest answer is that nobody knows what is going to happen next - it is little more than a guess. USD is due for a bounce on technicals alone but the fundamentals are terrible. EUR is holding up due to very firm statements from the ECB about keeping interest rates high. Most observers don't believe that can last for long.
My personal view is that the value (i.e. spending power) of most currencies is going to fall at an astonishingly high rate. Don't confuse this with 'inflation' - we are talking about price rises with economic deflation, a truly dreadful combination. Unless you decide to put some of your cash into assets such as commodities, precious metals, or whatever, then you can't do much worse than you propose - keep a balance of USD/GBP/EUR and spend whichever is working best for you at the time. The exchange rates between those three will probably trend back to the 200 day moving average from time to time. The worrying thing for you will be erosion of spending power due to devaluation of the currencies.
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My daily blog on the current financial crisis is at:- http://davidscompass.blogspot.com No PMs for now ybw1.20.lemain@spamgourmet.com
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