[ExI] Sudden outbreak of democracy baffles US pundits

[Stathis Papaioannou]

2008/10/13 Samantha Atkins <sjatkins at mac.com>:

> Holding stocks during this major dive across the board is idiotic.  Buying
> bargains when you think you see a bottom and great value makes sense but is
> of course dangerous.   Buying T-bills doesn't make a lot of sense.  Buying
> gold, commodities and hard assets does.

But most commodities and hard assets have depreciated against the USD,
and gold has only appreciated slightly. The USD has also appreciated
against most other currencies, even though ironically the US is
responsible for the recent economic rot. This is because the USD is
special: it is the world's reserve currency, due to the size of the US
economy and the demonstrated willingness of the US government to do
whatever it takes to protect their perceived economic interests. China
and Japan aren't going to sell their dollars to buy gold or Euro,
because the subsequent collapse in the dollar would damage their own
economies, as when a creditor forces a debtor into insolvency.



-- 
Stathis Papaioannou