I think the swiss franc is the best place to invest, then canadian dollar, then euro. Once gold prices drop a bit, gold is good too. Since we don’t know which will do best diversification is prudent. I am going to investigate buying government bonds of those currencies. I need to make calls to e-trade or large banks. My credit union doesn’t deal with international currencies.
If the dollar keeps falling we will see inflation, as prices of imports rise. But with the renminbi pegged to the dollar, it won’t affect prices of Chinese goods. Roubini makes a good case for China revaluing the renminbi before the Sept. deadline for the senator’s proposal for 27.5% tariffs for chinese imports. I think China has too many uncertainties in its banking sector, so I am unsure about buying yen.
Why did Bank of Italy buy british pounds instead of euros? Shouldn’t that tell us something?
