Some people who diligently criticize my thinking on various mailing lists, assume that the American economy was represented by the U.S. dollar is too big to fail. So these days God willing we will witness the process of sinking of the U.S. $ this.
This reminds me of the beginning of the movie Titanic, when the ship designer proudly declared that God would not be able to sink the Titanic - but what would happen? one trip just did not work he completed. Quantitatively we can see the process of sinking of the U.S. $ is through the graph above, which graphs last month to U.S. $ Index that measures the performance of U.S. $ against a basket of major world currencies are EUR, JPY, CAD, CHF and SEK.
Why 'Titanic' is only now beginning to sink?.
Besides a pile of debt that will not be paid in future generations that I have written in the writings mentioned above, now the American government began to run out the ultimate moves to save the economy as well as money.
A few hours ago the Fed was forced to cut rates from 1% to 0.25% which is the lowest record in history.
This step seems they do with forced to rescue the capital market and the industry began to fall. However, its negative impacts are also clearly pictured in front of the eye with a sliding falling purchasing power of U.S. $. U.S. $ Index fell about 2% after the announcement of reduction in interest rates the Fed is.
With the weakening dollar, the rupiah should have improved these days, more quickly you jump into a small boat (Rupiah), this would be better.
But the name is also the boat, we can not linger in a small lifeboat. Only our short term needs (less than 6 months) are quite safe in the lifeboat.
For our retirement planning, school children and our old days - we need a strong boat that has proved resilient in time and the various storms that is gold or Dinar. Now look expensive, but that's the boat we need. Allaah knows best.
