Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
5 Ways to Beat the Fed (and Crush Inflation)

Email this Article

Send with mail | ahoo instead.
Required Needs to be a valid email
Required Needs to be a valid email
We Want to Hear From You: Are You Prepared for the Global Currency War?
http://mney.co/1d1Afdf
Required Please enter the correct value.
Twitter

We Want to Hear From You: Are You Prepared for the Global Currency War?

By Kerri Shannon, Associate Editor, Money Morning • October 5, 2010

View Comments

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

The housing market remains in the dumper. U.S. stocks - despite a rally - are still 22% below their record highs of two years ago. And the "official" unemployment rate remains at a heart-stopping 9.6%.

With their knees almost ready to buckle under such burdens already, how will American consumers respond when clothes, computer accessories or other key consumer staples at their neighborhood Wal-Mart Stores Inc. (NYSE: WMT) undergoes an overnight price hike of 30% to 60%?

As the United States aims to increase exports by debasing the dollar, a global currency war is underway that could swallow consumers and investors if they don't prepare for the likelihood of a weaker dollar.

The United States, China, Switzerland, Brazil, South Korea, Australia, Japan have all entered the war, trying to bring down their currencies to boost exports and fuel growth. Countries are vying to win the "race to the bottom," as it's been called by Money Morning Contributing Writer Peter Schiff. And in the end the United States could lose out by winning.

Question of the Week
"Given the U.S. dollar's status as the world's reserve currency, America's oversized status as the world's biggest consumer, and the influence of overseas export-oriented businesses on their home governments, the falling dollar is a difficult issue for many countries to ignore," said Schiff. "And with the imminent arrival of a second round of 'quantitative easing' from the Fed, the big guns of dollar destruction are being locked and loaded. The move looks poised to set off a frantic race to the bottom among global currencies, which will have important ramifications for every investor. Unfortunately, this is one race the United States is poised to win."

The dollar on Tuesday sank to its lowest level since January when measured against other major currencies.

The falling dollar means, exports will rise, increasing productivity, and proponents of a weaker greenback argue that the change could spur job growth. But if the dollar continues to lose purchasing power, foreign imports will cost more, and the deals on beloved U.S. discount stores' shelves will disappear - hurting U.S. consumers who are still regaining post-recession footing.

A steep climb on the price tags of usual "low-priced goods" slow the U.S. economic recovery and investors will may find portfolio gains eradicated if they haven't prepared for a weaker dollar.

"Against this backdrop, one of the smartest things for investors to do is buy those things that not only appreciate amidst failing fundamentals, but which preserve their wealth at the same time - case in point gold and other precious metals," said Money Morning Chief Investment Strategist Keith Fitz-Gerald. "Commodities may drop in the short term, but any such moves will likely be reviewed in history's rearview mirrors as buying opportunities, for at least the next ten years."

Money Morning Contributing Editor Jack Barnes outlined this week seven ways to profit from the global currency war, noting a situation like this creates opportunities investors don't always get to explore.

"The era of 'friendly globalism' is over," said Barnes. "It's been exposed for what it always really has been - a series of negotiations. Now, however, the niceties and decorum that were always displayed to the outside world are gone, having been replaced by hard-ball/take-no-prisoners economic tactics. In that kind of an environment, however, some very interesting profit opportunities can crop up."

This brings us to next week's Money Morning "Question of the Week": Are you ready for a global currency war that could drop the U.S. dollar to new lows? How have you prepared for currency changes that could affect your investments as well as your consumer habits? Do you fear the outcome of the "race to the bottom," or welcome a weaker currency that could boost U.S. exports and strengthen economic recovery?

Send your thoughts, questions and concerns to mailbag@moneymappress.com.

[Editor's Note: Is there a topic you want to see covered as a "Question of the Week" feature? Then let us know by e-mailing Money Morning at mailbag@moneymappress.com. Make sure to reference "question of the week suggestion" in the subject line.

We reserve the right to edit responses for length, grammar and clarity.

Thanks to everyone who took the time to participate - via e-mail or by posting their comments directly on the Money Morning Web site.]

News and Related Story Links:

  • Money Morning:
    You Heard It Here First: A Global Currency War is Being Fought - And There Will Be No Victors
  • Money Morning:
    Controversial House China Tariff Bill Will Take America Down the Wrong Road
  • Money Morning:
    Seven Ways to Profit From the Worldwide Currency War
  • Money Morning News Archive:
    Question of the Week Feature

Join the conversation. Click here to jump to comments…

Login
guest
guest
9 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
George Brierley
George Brierley
12 years ago

Am I ready? Is anyone? I stacked a little gold and silver. There's not too much I can do, other than tell folks it's happening. Something is !

A week ago my PayPal account was frozen because my websites allowed people to donate some funds to help with the cost of a bunch of websites. Can't take donations — not a charity. Doh !

Today, suddenly, I'm no longer allowed to convert some USD into Aussie dollars. Cripes! I'm a resident here! USD's no good to me here ! Are we still trading internationally ? Is the USD still the world currency ?

Something reeks to the high heavens, and my preparation for this currency war might need to be that I stay here in Australia prospecting for gold. Cheers y'all… GMB.

0
Reply
Louis Fontaine
Louis Fontaine
12 years ago

Can everyone prepare for such an eventuallity? No.

Some will win because by luck they are in the right thing or have enough cash, precious metals to sustain them.

Most people will not buy anything which is not essential. When this happens we know the result.

90% of all people will ask "What happened?" when its all over.

0
Reply
William Knapp
William Knapp
12 years ago

It is becoming increasingly apparent that "greed" will put the "coup de gras" on the gaussian distribution of wealth in the world. Simply put….."them that has is them that gets". The political "fall out" will create decades of misery for the majority and enormous effort and cost to sustain the "isolation" of the few who benefit.

0
Reply
trackback
International M&A Boom Fueled by Global Currency War
12 years ago

[…] Money Morning: We Want to Hear From You: Are You Prepared for the Global Currency War? […]

0
Reply
sanjyay
sanjyay
12 years ago

sir dollar came down dramatclly

0
Reply
Felisberto Dias
Felisberto Dias
12 years ago

Hi, I live on some small islands in the middle of the Atlantic, the Azores, part of one of the PIIGS (Portugal) and we use the euro. what I would like to know is if the dollar collapses, I know it will affect us all, but will the euro hold out a bit longer at least?

0
Reply
Lou Garoo
Lou Garoo
12 years ago

Am I prepared for the global currency war? I am not sure as nobody has ever experienced anything like this in ever, however one can learn a little from history.

Peter Schiff's quote summarises what we are up for…. "The race to the bottom"

I believe that the US "Elite Decision Makers" did the same thing as what Robert Mugabe did to Zimbabwe. Taking from a section of the country and re-distributing it to another un-deserving mob.
The currency war (US printing press) will go full steam and the "worldwide" consequences are very obvious and there will be worldwide retaliation from people that have been hurt. (social unrest)

What am I doing to prepare… ?? Life's necessities (food, medicine & precious metals) and get the hell out of the big cities and when the &*%$ hits the fan, watch and reassess the situation daily.

I rather be prepared than be caught in the wrong place, right in the middle of this upcoming crisis.

That's my alarming "conspiracy theorist" spin…. (as I have been labelled recently) but I am sticking with my plan A

Lou

0
Reply
John
John
12 years ago

Ban the
Federal Reserve, there is nothing Federal about it, it is a PRIVATE BANK owned by few very powerful people, they are the cause of all our problems, get rid of them first, remember whoever controls the Money Supply control the laws of the land. They are out to bankrupt the nation, Demand that the Federal Reserve be destroyed

0
Reply
gordan finch
gordan finch
12 years ago

Not so long ago Bankers were held in high esteem, then after the AIG, Zurich Financial Services Fraud and the $billions it was fined, the truth broke most banks were insolvent.

Was the Insurers, Bankers, Financial institutions, Just Crooks.

Then the truth came out, the Crooks in Suits had sold their stock before it became known it was Valueless.

Where did all these crooks in suits come from — I was asked, in reply "from the highest rung of the social ladder, this is the truth.

The small guy committing small scale fraud gets jailed. The big guy at the top of the social ladder, gets fined, for fraud on a massive scale. And its usually paid by the organisation he is CEO.

The truth starts at the bottom but comes out at the top filthy and vile, like the scum, "the crooks in suits, unfortunately home forclosures in the US will see many of them named and shamed, but not JAILED for their crimes.

Money is power over everything and it breeds the corruption in monetary power by inbred ownership at the top.

0
Reply
LIVE
Visit Money Morning Live


Latest News

January 19, 2023 • By Money Morning Stock Research Team

These Stocks Could Go To $0

January 9, 2023 • By Money Morning Stock Research Team

The Government Is Pouring $391 Billion Into These Stocks - Buy Now

December 27, 2022 • By Money Morning Staff Reports

6 IPOs in 2023 You Can’t Afford to Miss
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover This Is VWAP Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Warlock's World Penny Nation Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Vega Burst Trader Flashpoint Trader Darknet Hyper Momentum Trader

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell My Info

wpDiscuz