I’m in limbo on this issue. Euros? Renminbi (can you even buy it)? Or better to buy stocks in those countries, as Warren Buffett has done, so you get the benefit of the stock and the currency exchange.
In Dollar Crisis, Richard Duncan has about 100 charts/tables from the IMF and Fed Reserve to back up his points. He shows that the entire global economy slowed in 2000 when the US consumer slowed spending during our little recession (except China – don’t know why yet – am not that far in the book). He says when the US hits its next recession, the entire globe will hurt, because they are export oriented. In 2000-2001, commodity prices plunged as demand for goods dropped. This will happen again. Unless these countries can stimulate internal demand, they will hurt when the US goes into a big recession.
