1. As soon as they put the peg in, I was sure that it was only a matter of time before they would be forced to abandon it. Of course, timing is always the problem, but as I don't use margin and am not currently tapping my savings, it's impossible for me to be forced out.glennds wrote:Libertarian666 - A few questions if you wouldn't mind sharing your thought process:Libertarian666 wrote:
I'm weird, even here: I don't like stocks, T-bonds, or very much cash in the form of USD. So that leaves gold and sound foreign currencies (e.g., CHF).
1. Have your feelings about CHF been affected or not by their decoupling from the EURO?
2. What other foreign currencies would you put on the sound list besides CHF?
3. In your view, why are any of these currencies more sound than USD, and/or what is it about them that makes you feel they would gain purchasing power in a depression situation?
I have been wondering what to read into the CHF decoupling from the EURO. I can't help but believe it's a sign of some kind, but I'm not quite sure what.
Thanks for sharing,
2. I don't really follow any other currencies. I have significant interest-paying investments in CHF so it is important to my portfolio. I suspect the Chinese remnibi and maybe the ruble will become much more important in time, as I think they will go back on the gold standard, but it's premature to speculate on that at this point.
3. N/A
As for what the decoupling means, I believe it means that the next phase of the currency wars has started, much like what happened in the 1970's when the Swiss were forced to abandon fixed parity with the dollar. If I'm right, things are going to get a lot crazier pretty soon, and the winners, as in the 1970's, will be gold and sound currencies.