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Currency

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Oct. 13th, 2003 | 12:52 am
mood: paranoid

I'm a bit on the paranoid side and do worry that the US is running the risk of driving its economy into the ground and to hedge my bets would like to exchange some of my savings for euros.

However I have no idea how one goes about this. I can figure out how to buy euros but a pile of cash doesn't seem that useful. Perhaps a better idea would be to buy shares in some european companies. For instance I think several of the leaders in wind power are located in europe.

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Comments {4}

(no subject)

from: ohnerustung
date: Oct. 13th, 2003 02:26 am (UTC)
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The value of the dollar is not tied to the economy in any way. It's tied to the rate of inflation. In most countries in the world the dollar is more valuable than the local currency since our inflation rate has been around 3% pretty much forever, almost everyone else has one that's much higher, 500% in some countries.

The problem is that your bank account probably offers about 3% return on your savings. Basically meaning you dont get anything out of it.

The piss poor economy is what makes investing in stocks a mostly bad option.

Really the only good places to put your money are international timezone arbitrage - for slow growth with no risk (about 20%/yr) or MMOG development - for high growth with some risk. Both of these industries are international making the destruction of the US economy less important.

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Dieppe

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from: dieppe
date: Oct. 13th, 2003 11:46 am (UTC)
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I wouldn't consider buying any foreign currency for the time being unless you:

a: Believe spam that is sent to you, and
b: Believe that money changers should be able to buy houses, boats, and jets on your dime. :)

No really, the only people that come out ahead are money changers when you buy and sell foreign currency because they charge you a bundle...

(Yes yes, it's more complicated than that.. but you really can't "Make a Fortune Buying and $elling Foreign Currency".... otherwise everyone would be doing it, and you really can't hedge your bets like that even if you suspect currency will go up or down. Like that other fellow said too..)

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Diane Trout

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from: alienghic
date: Oct. 13th, 2003 12:21 pm (UTC)
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Actually it's more that I want investments that are valued in euros as well as dollars. I periodically worry that what keeps the US currency stable is it is used to trade oil. However various groups are pissed off at the US and want to switch to Euros. Without the need of foreign investors to buy dollars our trade deficit will come back and bite us in the but.

The idea is that by keeping investments in a different currency if the US manages to bankrupt itself fighting its silly war, I'd still have money in a stable currency.

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Dieppe

(no subject)

from: dieppe
date: Oct. 13th, 2003 12:43 pm (UTC)
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Well that'd be good too... I never bother with investments... $1 for a lottery ticket now and then when it's high, but that's about it. :)

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