X Post: My thoughts on the coming dollar collapse

[ubiestmea]

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Getting something for your dollars is better than getting almost nothing for your dollars. Owning a company or real estate, especially if you try to bet on companies that are unlikely to flat go under in a recession (like the NASDAQ), is better than holding onto dollars or waiting for those dollars to crash in value before unloading them. And trying to sell of dollar holding for Euro or Yen would likely kick off the crash of the dollar.

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Look at a chart, the dollar has been going down for quite awhile. Do you think that banks and business haven’t noticed yet and they will all suddenly realize it at the same time? Banks and business are constantly monitoring and adjusting their currency exposures through the forex market. What do you think accounts for the almost 13 trillion in monthly forex volume?

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But you can sell them much later, once the situation has stabilized. Again, it's not a matter of making money. It's a matter of stopping bleeding.

The scenario I am describing has largely already happened in the late 70s and early 80s. Remember when everyone was hysterical that foreign companies were buying up American companies and real estate? The Japanese owned skyscrapers, companies, you name it. This happened because: There were a lot of dollars in foreign hands, the dollar was weak internationally, and since the US was already *in* recession, there was little direction to go but up for surviving US companies. Hence foreign investment went through the roof.

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Over the years, Japanese investors have established a strong presence in the United States. Japanese FDI in the United States surged in the 1980s and continued to increase in the 1990s. In the 1980s, Japanese investors acquired such high-profile U.S. assets as Columbia Pictures, Rockefeller Center, and Pebble Beach Golf Course. These investments followed surges in Japanese investments in the United States by Japanese consumer electronics firms and auto producers. (Many of these acquisitions were not profitable for Japanese investors.)

http://www.fas.org/sgp/crs/row/RL32649.pdf