Falling Dollar & Seeing Freedom

by | Apr 20, 2007 | Archives

Falling dollar & seeing freedom can be the same. If you see the falling dollar and act you can maintain your financial freedom.

An ancient Chinese saying goes like this. “First the man drinks the wine. Then the wine drinks the wine. Then the wine drinks the man.”

This quote describes the nature of institutions, such as the falling dollar. The institution begins by serving an idea that enhances mankind. Yet it ends up being served by man. As the institution absorbs itself it loses the respect of those it was intended to serve. This is very true of the falling dollar.

To maintain itself the institution then reverts to trickery or force. This is the case of the falling dollar.

So we can see the Western monetary system and trickery. However the game can only be played for so long. First for 40 years the greenback fell to other major currencies. Now it is sinking versus the emerging countries.

A recent message outlined that the Colombia peso has risen 27% versus the falling dollar in the last three years. See Emerging Currencies Protect Wealth – Power of the Dollar Revaluation

This is not some one off event.

We have looked at Brazil’s currency in previous messages. Since 2003 it has risen even more than the Colombian peso. In early 2003 it took 27 US cents to buy a real. Now it takes 47 cents!

How bad can the falling dollar get? How about the Uganda shilling? Last year the Uganda shilling began to hold steady against the dollar. It took 1,853 schillings to buy a dollar. Today it takes only 1,750 shillings to get a greenback.

The message here is this. In the past there was a three tier system with the US dollar in the middle. One could bet on industrialized currencies and expect them to rise versus the dollar. The dollar was the dollar and the third tier was emerging currencies. One could bet on these to always fall versus the dollar. No more! Every currency must be observed and great opportunity prevails all over the world.

Look at the dollar short portfolio we track with Jyske Bank. 32% of this portfolio is invested in emerging market currencies via borrowed US dollars.

Percent of Portfolio
5,00% BK Nederlandse Gemeenten 16.07.10
12,50% Brazil rep. of 05.01.16
6,375% Rabobank Nederland 20.03.09
6,50% Hungary Gov. 12.08.08
9,50% Iceland 13.06.2008
9,00% Mexican Bonos 22.12.2011
6,00% KFW 15.07.2009
10,25% KFW 09.02.2008
6,25% Turanalem Finance BV 27.09.2011
4,75% Iss Global A/S 18.09.10
8,625% NXPBV 15.10.2015
JI Favourite Fund
JI German Equity Fund
JI High Yield Corporate Bond Fund
JI Japanese Equity Fund
JI European Equity Fund
JI Emerging Markets Bond Fund EUR

This portfolio has risen 23.54% in the five and a half months since we created and have tracked it. A big part of that growth is from the US dollar’s fall.

Merri and I are preparing to fly back to the US for a couple of months, get our lettuce, corn, beans, peas, pumpkins and squash planted, plus give our hound dog a chance to roam the farm.

This freedom to live in places we love that we choose is so wonderful. The sun always shines somewhere, in opportunity, in weather and in sweetness of people.

So to stay in touch during our travels north, I have written a series looking at freedom of all types.

Tomorrow’s message looks at a series freedom that the medical establishment is trying to take away from us right now. Do not miss this.

Regards, Gary

Learn how to track these portfolios with us at International investments in multi currencies. International Investments Course with Multi Currency Investments and Portfolios

At our upcoming IBEZ in N.C., we will update our latest multi currency portfolios and much more. Join us May 25 – 27, 2007 at the International Business and Investing Course in North Carolina. Thomas Fischer joins me to update global economics there. International Investments and International Business Course, West Jefferson, North Carolina, May 25-26-27, 2007

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