The Mudcat Café TM
Thread #79147 Message #1431498
Posted By: Donuel
10-Mar-05 - 09:07 AM
Thread Name: BS: Last chance to cash in US dollars
Subject: BS: Last chance to cash in US dollars
George Soros made 39 cents on the dollar by converting dollars to euros 4 years ago. Warren Buffet made about half that by converting later.
The only thing propping up the dollar has been China and Japan which has led to the unbelivable low mortgage rates still available in the US despite the falling dollar.
BUT NOW Japan will be diversifying investments. This will begin a significant inflation spike... However - As soon as the massive sell off of US Treasury notes begins in Asia it will be too late to convert your savings to another currency without huge losses due to inflation.
Will China pull the plug 10 years before they are slated to be the #1 GNP in the world? I do not know.
While US billionaires will be safe, it is certain that no matter what wing you adhere to, the voodoo economic chickens are coming home to roost.