mixxalot – I have read that 0.60 might be where the dollar is headed over the next 2 or 3 years – current level is around 0.76 so 0.60 represents a 21% decline – all of the central banks are in a race to devalue their currencies – Google ‘competitive devaluation’ if you want to read more – I’m not sure what prize awaits the first currency to reach zero but it must be a good one – US currently expanding money supply by about 17% per year according to reconstructed M3 numbers (http://www.nowandfutures.com/key_stats.html)
tons of stuff in the archives about gold – I hold GLD, SLV and CEF in my 401K (stopped out of NG recently)
George Ure (www.urbansurvival.com) has suggested in the past that one could plan a trading strategy around the idea of competitive devaluations – understand that all central banks are in a devaluation race (ie, managing their currencies downward) and trade the commodity markets accordingly – I got a very good entry into some March 2008 call options on the corn futures market by waiting for a day when the dollar rallied and corn over-reacted on the downside
