Tag Archive | US Dollar

5 Reasons The US Could Shine

Despite massive debt and an extremely slow economic recovery, the United States could potentially emerge from its worst economic downturn since the Great Depression stronger than ever.

Despite China’s extraordinary economic growth, the U.S. is still the largest and most productive in the world.  America’s economy is three times the size of China’s  and the per capita income of China is only about 10% of that of the U.S.  Additionally, the U.S. generates more output in one year than the Japan, China and Germany (the next three largest economies) combined, while only constituting a little under 5% of the world’s population. 

A second reason that the U.S. remains a strong contender is because it is the top exporter in the world.  Granted there is still a massive import/export imbalance in the US, but the nation still exports nearly 10% of global exports.  Read More…

ETFs For Currency Debasement

By Kevin Grewal

As developing nations around the world have turned to government funded stimulus packages to ignite their economies, a nation’s debt and currency debasement should be of much concern. 

Most recently, a study indicated that the U.S. national debt has ballooned nearly 12 fold over the last 30 years.  Additionally, over this same time span the ratio of debt to GDP has gone from nearly one-third to 85%.  During this time of exploded debt, GDP has only expanded 5.3 times, indicating that debt is growing at twice as fast as the U.S. economy.  Similar trends have been seen in Europe, in particularly Greece, Spain and Portugal.

Some concerns of this exponential growth in debt include hyperinflation, as a result of printing more currency, a decline in the value of a nation’s currency, better known as currency debasement, and increased costs of borrowing, which make it difficult to chip away at deficits.

Some experts suggest that this trend in the developing world, in particularly the United States, is likely to continue as nations have become accustomed to borrowing extraordinary amounts of money and printing extra currency to stay afloat.  If this is the case, than inflation will be inevitable and currency values will diminish. 

Some possible ways to protect against currency debasement and increases in inflation include the following: Read More…

Crude Oil Likely to Remain Hot

By Kevin Grewal

With a weak U.S. dollar, high unemployment numbers and the continuous growth of emerging markets, the energy sector, in particularly, crude oil will likely continue to remain attractive. Read More…

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