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Almost every foreign currency has at least an informal peg to the dollar. The European and Chinese Central Banks are working hard to make sure that the dollar
by bokonist 18y ago
Almost every foreign currency has at least an informal peg to the dollar. The European and Chinese Central Banks are working hard to make sure that the dollar does not fall too much. The only truly foreign currency is gold. But the potential for a dollar crash is already factored into the price, so buying gold too is very risky. The safest place to put money would seem to be a combination of FDIC insured CD's, dividend paying stocks ( as opposed to non-dividend, purely speculative stocks), and gold.
- thwarted 18y agoI don't follow how CDs, FDIC insured or not, wouldn't be affected by inflation in exactly the same way cash would be. Say you buy a $10 CD that pays 10% after 12 months. Within that year, the dollar is devalued by 50%, but your CD still only pays out $11, even though you'd need $22 to have the same purchasing power.