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Tuesday, November 30, 2010

When The Dollar Dies

While you may think this is simply a fiction, it is becoming more and more real that we have stepped onto the journey which is leading towards the end of dollar. Even though I'm not saying that this will be happening overnight, I highly suggest that you should be prepared for the unavoidable outcome. Given that, I recommend that you spend a few minutes to watch this video to experience in advance the day when the US dollar dies.

Similar to my very dim attitude toward the Euro, I think the US dollar will end very badly and hyperinflation is inevitable. Of course this is a long-term trend. In a very short term, the US dollar may rise significantly, which is already starting. The Euro is in a much worse shape and that's why I'm shorting Euro with EUO. If you want to take a ride for the rising dollar, you may buy UUP, an USD index bullish ETF. To bet against the US dollar for the long term trend, there are quite a few strategies. The most direct way is to buy USD bearish ETFs such as UDN. The better way is to take the opportunity of any gold and/or sliver correction to long gold/sliver. Shorting long-term US treasury bonds is another very good way to bet against the coming hyperinflation.

Consider you have been warned!

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