Id like to ad that I think he is to bearish on the dollar. Here is an email I sent to Dr. Hudson,
“I have been very bearish on our problems within housing and the economy in the last 2 years. I am in Southern California and as you know housing is a big mess out here. The area where we plan to move is gaining a foreclosure every day and they are not selling. My question is, in the podcast you stated that you are holding CD’s because you do not know any other place to put it (that is my current dilema) why are you holding CD’s in US currency when you have a strong feeling that the US dollar is going to fall? I have over 100k in CD’s that will be used on a primary residence once the housing market fully corrects (crashes) and HATE risks as you do. Is it ok to have asset deflation at the same time you lose purchasing power in the other items that you will need to purchase? I just hope that holding cash will not hurt me in the end.”
His reply,
“Holding cash won’t hurt. So far the dollar is holding strong. Ironically, the greater the crisis, the more the flight TO the dollar from other economies. So it’s the least risky thing that I can find.
MH”
That was on 3/28/07 7:04 PM
Dr. Hudson is President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City and author of “Super-Imperialism: The Economic Strategy of American Empire” (1972 and 2003)
