curency Dollers money makings etc...

Sunday, July 15, 2007

Curreny

Currency of most stable economy, being a currency of the country consuming world production, it has taken over the status of World Reserve Currency. Due to its constant appreciation over other nations currencies, it has become part of every nations currency reserves. Every country with surplus funds, every corporation with export earnings has choosen to park their surplus cash in US treasuries, US Stocks.However since the meltdown of US Stocks from the year 2000, world is looking for alternatives to save its surplus cash. It has started trying with Euro, Pound, Yen and bunch of other currencies. Unfortunately most of these countries want their currency to depreciate agaist USD to support their own countries exports and growth. Thanks to over dependence on Single consumer nation, most of the countries are solely dependent on US Economy to export and prosper.In a nutshell US Wants appreciating USD (to get cheep imports), Rest of the world wants depreciating local currencies (competitive Exports to US) , appreciating USD is a win-win situation.Now what to do? USD is not great for future and no one wants their currency to appreciate against USD. How to diversify? Where to park funds?Following looks like alternatives:1) Invest in currrencies of small countries which can not buy USD like Japan. So buy SA Rand, Canadian Dollar.2) Invest in hard currencies like gold, platinum, silver etc.I would like opinions on the potentail of any other countries currency which has potential to become a World Reserve currency, is it Japanese Yen, Chinese Yuan or Indian Rupee???