A really bad idea!

I get a lot of emails from various investment newsletters. I recently got one from Investment U that was written by Louis Basenese titled The End Of The Weak Dollar. In his article Louis had 10 reasons why the USD is headed higher, not lower like many people believe.

4. Warren Buffet, Jim Rogers and Bill Gross… Louis claims that these three legends can be wrong about the USD.
My Take: Duh. They aren’t gods. Just because they CAN be wrong doesn’t mean they ARE. Time will tell.

5. Pop Culture… Even in our pop culture there are now examples of people hating the dollar. Since pop culture hates the dollar, it must be near the end of its fall.
My Take: Just because pop culture is now paying attention to the falling dollar doesn’t mean it will now stop falling. The fundamentals will decide…

7. The Amero… Louis goes on to explain that the Amero is a really bad idea and will NEVER happen because the U.S. will never want to give up control over their macroeconomic situation - besides which, it is nothing but a conspiracy theory.
My Take: The Amero is a really bad idea (I agree!). But, since the U.S. is so much larger than Mexico and Canada combined in both population and economics, the U.S. wouldn’t relinquish control but instead gain control over both Canada and Mexico. The Euro was a different situation since no one country controls a majority, but if the Amero were to occur the U.S. would be the majority and therefore have more power than Canada and Mexico.
The resources that Canada offer would also help bring stability to the currency by taking into account all those assets in the ground (ie, the assets backing the promissory note (which fiat currencies are) would be strengthened). If (a big IF) the USD was to crash or fall significantly, do you not think the U.S. government would try and come out with a new Amero currency? It would be more stable and better compete with the Euro… that said, I think it is such a bad idea for resource rich Canada. We would be giving up control over our fortunes… and yes, we are a VERY rich country. Our oil reserves are now 2nd in the world (and still climbing as we discover more!) and we have plenty of farm land and other natural resources contained within our vast borders. We are currently in SURPLUS territory for our government budgets and our economy is growing rapidly (in the resource sectors - perhaps not the manufacturing sectors - but that is a problem with labour and competing with the wage slaves in China that aren’t paid well.). Let’s hope this Amero never happens and that it is just a stupid conspiracy theory (though I have my doubts about whether its just a theory and that it might be a plan for the future).

8. A Weak Dollar Helps Nobody… Louis says it helps nobody.
My Take: It helps somebody because there are two parties to every transaction and somebody will be the winner and somebody will be the loser.

Read the whole article at Nabloid.com

Vor dem Bust ist...

...nach dem Boom!