Waitedg,
You will hear this prediction first; it has not been on the news or anywhere else, to my knowledge.
After the 2008 Olympics, the dollar will decline drastically!
Up until this next summer Olympics, China will be playing Mr. Nice Guy. Then I believe that they will take off their gloves after a successful conclusion of Olympics and all heck will break loose.
China is already aligning energy contracts all over the world. It recognizes that there is such a thing as Peak Oil and Peak Gas and is therefore already planning for this epochal event. Our Congress has held a few hearings on Peak Oil, but nothing of substance has occurred.
As to the dollar, the greenback is dying. The deficits, trade, government(Federal, state, and local), and personal, are like a rotting basket of fruit in the hot summer sun.
Witness the fact that despite 13 rate increases by the Federal Reserve, inflation continues to run ahead of these rate increases. The U.S. will probably end up spending at least a trillion dollars to rebuild the Gulf Coast area. AND it will be done with fiat money, which will only increase inflation.
In the past, the U.S. and Britain have dumped part of their gold holdings on the world market to contain the price of gold and thus hide the weaknesses in their respective currencies. And guess which countries have been buying gold? Yup, China and India.
I continue to invest in gold and silver as a form of financial insurance. I have coal and uranium investments as a hedge against Peak Oil.
The future will be difficult, and we as individuals will have to do more than rely on the national government, which continues to be inept when it comes to national emergencies.
Having said the above, I still wish everyone a Happy and Prosperous New Year.
sumisu
