COMPETITIVE DEVALUATION

Are you worried about the US dollar depreciating against major currencies?

On the face of it you should be (those who live in the US and Hong Kong). However think of it logically:

How far do you think the EU Monetary Authorities will "let" the USD depreciate against the EURO? Companies like Airbus are already suffering (flying on the A380 worries me a bit), ditto BMW (they have to set up plants outside of Germany as the cost is simply too high).

Similarly how far do you think the BOJ will let the yen appreciate againt the USD?

I predict a competitive devaluation will soon start with all the central banks. In other words a massive increasing in their respective money supplies.

Prepare for your savings to be worth much less!!



Michael Chew