The greenback is up, yes indeed, but many, including James Turk, conclude that we’re only seeing a bear market rally. The fundamentals for the US dollar haven’t changed, and as I wrote in a previous post, the reasons for its current climb are very circumstantial.
Turk suggests that that’s why now is a good time to exit the dollar and put your money in something much safer: gold. Turk isn’t trying to give a plug for his GoldMoney venture, which I think is definitely worth your looking at – and I’ve written more about it here – in fact, he’s been researching gold’s fundamentals for decades.
If you don’t like gold, and you don’t want to own US Treasuries – I’d understand – where should you park your money? Well, we now know that not all US money market funds are alike. But you should look at investing in the Canadian banks or Canadian money market funds.
I’ll repeat that the Canadian banks have recently been found to be the safest in the world in this current mess – more than Luxembourg and Switzerland.
The most conservative (ie., safe) picks are probably TD Canada Trust and Bank of Nova Scotia.
Whatever you do, you might want to follow Jim Rogers and use this opportunity to clear yourself out of some US dollars.
March 2009 update: The threat of US hyperinflation is increasing. Now the US is coercing the rest of the world into hyperinflating along with it. What on earth could global hyperinflation possibly look like? Currency exchange relationships are all relative anyway. Is global hyperinflation something we need to worry about?
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Pretty soon might be the last good chance, now that China’s Central Bank (as of yesterday) is actively calling for an ALTERNATIVE to the world currency. I know it’s been rejected by the EU so far, but it’s the first step in that direction.