lowtrade

[trader guy]

In a deflationary environment cash appreciates just by being, well...cash. That's hard for most to grasp since we have seen only inflation until just recently. But there have been long swaths of US history where inflation was negative and the economy did fantastically well.

With the dollar still being the world reserve currency, it will do well during these times of deleveraging since owning it is more advantageous than owning any other currency.

http://stockcharts.com/h-sc/ui?s=%24USD&p=W&yr=5&mn=0&dy=0&id=p46559705458

If you know how long this deleveraging process will take, you know how soon dollar appreciation might reverse. But I think it could take decades. And who knows the events that may transpire in the process. Old habits die hard. And central bank policy has become ingrained in our cultures, so it will take awhile.

It's time for the United States to act like a true world leader and kill the bank (the Fed).