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Monday, April 25, 2011

Will Dollar domination remain in New World Order?



What would be the status of Dollar in New World Order emerging?  Will it retain its status among currencies of the world?  These are the questions for which every one seeks answer in view of the depleting dollar value internationally.  If you get the right answer you are sure to be in winning position. One should go into search history of dollar value before arriving at any conclusion as we have had worldwide depression and recessions in the past too. http://en.wikipedia.org/wiki/History_of_the_United_States_dollar explains how the table started to turn against Dollar from seventies during oil prices spurt and inflation caused on account of Vietnam War.  President Richard Nixon was compelled to stop convertibility of Dollar into Gold and then the ill fate of Dollar began.  Gold Price moved from $ 35 in 1969 to $ 500 per Ounce in 1980. There was a sudden shift towards investing in commodities thereafter.
But during successive years US $ witnessed erosion in its status due to NPAs  not as non performing assets but non performing administrators who lacked caliber of earlier administrators who managed even worst situations and emerged out successful.   Unnecessary wars and meddling in international affairs were misunderstood to be sign of status and strength that caused huge cost to exchequer. Even till late during the time of peril too there has been an urge to take up the self imposed role of world police.  Thank God now the roles are more or less collateral and passive as active roles passed on to NATO and European Union who enjoyed privileges so far at the expenses of US.
The emerging New World Order of BRIC  and now BRICS  after inclusion of South Africa is seriously considering replacing US$ with new mechanisms to their added advantages.  Among its members India and China,  the emerging economies least affected by the recession are now in commanding positions.   This latest development makes the position of US$ more vulnerable.  But is it safer to get invested in these regional currencies.  The answer is No due to prevailing inflations and loss of intrinsic value.
So the ultimate choice for safer and prosperous investment is none other than the traditional one i.e., investment in commodities like Gold and Silver whose value is sky rocketing.   This is so because there is a basic rule for safe and sure way to invest and that is to follow the mob.  The mob is on the chase for these commodities now.  If you do not follow the mob, you would be left alone.  If you have not done it already, do it now.   It is the time.  Of course, you can be an expert within the mob itself by making a comparative study of the speed and stamina of the front running stocks.  I have predicted it almost a year back through this blog.  An analysis of related appreciation and safety among investment in Gold and silver   I repeated it many times through blogs and various articles.  The latest being a few days back,  cautioning silver price may touch $50 an ounce in international market.………….  This too is becoming a reality now.   There is still scope and never consider it as a lost opportunity.  The race has never ended.  How long it will last, only time will reveal.   For those who missed earlier opportunity it is better late than never.  Wait for the earliest chance for correction in the prices of these commodities and make selective purchases till the trend continues.

1 comment:

  1. Dollar has crossed one mile stone long overdue. Euro now succumbed to the superiority of dollar as various monetary authorities have agreed to dollarize Euro on a temporary basis to overcome the trouoble they are in. Read the link to know more details.http://biggovernment.com/cstreet/2011/12/04/us-dollar-triumphs-over-europe/

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