Inflation & Multi Currency Investing

by | Jul 9, 2008 | Multi Currency Investing

Inflation makes multi currency investing more important and more difficult both at the same time.

Inflation forces banks to charge more for their banking services or to raise minimums.   Inflation destroys currencies which causes governments to make it harder for its citizens to to invest abroad.

This inflation problem is so acute that it is now quite a task for small American investors to invest abroad.

Non Americans should not feel complacent.   The US is exporting its excess of regulations and rules.

Privacy is dimininishing at a rapid pace.

A June 28, 2008 New York Times  article by Charlie savage entitled “U.S. and Europe Near Agreement on Private Data”  says:  “The United States and the European Union are nearing completion of an agreement allowing law enforcement and security agencies to obtain private information — like credit card transactions, travel histories and Internet browsing habits — about people on the other side of the Atlantic Ocean.

Negotiators, who have been meeting since February 2007, have largely agreed on draft language for 12 major issues central to a “binding international agreement,” the report said. The pact would make clear that it is lawful for European governments and companies to transfer personal information to the United States, and vice versa.

Paul M. Schwartz, a law professor at the University of California, Berkeley, said such a blanket agreement could transform international privacy law by eliminating a problem that has led to negotiations of “staggering” complexity between Europe and the United States.

“The Bush administration and the European Commission have not publicized their talks, but they referred to their progress in a little-noticed paragraph deep in a joint statement after a summit meeting between President Bush and European leaders in Slovenia this month.

Issued June 10, the statement declared that “the fight against transnational crime and terrorism requires the ability to share personal data for law enforcement,” and called for the creation of a “binding international agreement” to aid such transfers while also ensuring that citizens’ privacy is “fully” protected.

“The reason it’s a big deal is that it is going to lower the whole transaction cost for the U.S. government to get information from Europe,” Mr. Schwartz said. “Most of the negotiations will already be completed. They will just be able to say, ‘Look, we provide adequate protection, so you’re required to turn it over.’ ”

This may lower the cost for governments to track criminals, but will raise the cost of banks and investment managers to serve their clients. This will make it even harder for banks to accept customers from abroad.

This is why we are providing a series for our multi currency subscribers on how even small investors can still create multi currency portfolios.

You can subscribe here.

The last two lessons in this series shows stocks, mutual funds, banks and brokers that can be used to develop multi currency portfolios.

Save $130.  During the July recession days we are reducing the normal subscription fee from $249 to just $119.  Save $130 and enroll now.

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