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 No.170

What are the consequences of the dollar losing its status as reserve currency for North American investors?

Germany recently made a deal allowing it to trade Euro for Yuan directly without going through the Dollar:
http://www.bloomberg.com/news/2014-11-16/frankfurt-open-for-yuan-clearing-as-spreads-show-liquidity-gains.html

This is shortly after BRICS countries created their own world bank:
https://en.wikipedia.org/wiki/New_Development_Bank
http://www.forbes.com/sites/jonhartley/2014/07/28/the-brics-bank-is-born-out-of-politics/

Assuming this catches on, what about the theory that as countries move away from the dollar, oversupply leads to rampant inflation in the US? Historically, stocks have been a hedge against inflation, but will that be the case now?

Realistically, you probably can't really play this, since the market is efficient and smarter heads than ours are watching all this very closely. Plus, with players this big, manipulation is very likely.

 No.171

>>170
Why do you think equities won't be the investment (gold excepted) most insulated from inflation this time around?

I mean QE is an almost direct inflation of equity prices, so riding SPY seems like the surest way to get the money Helicopter Ben and Chairman Yellen are dishing out.

 No.175

>>171
Because historically, the inflation-Wall Street relation has existed in a closed system. Inflation happened because the Fed printed too much money, people start buying expensive shit because they can't save anyhow, companies make money, the owners get rich, they go around and buy more stuff/create new companies/invest. Overall wealth (regardless of how many paper notes that wealth is represented in) moves from the poor (who invest comparatively less of their typical income) to the investing rich but the total wealth of the US remains mostly unchanged.

But if the inflation is happening because the global status of USA as an economical mediator declines, surely this will actually damage the US economy itself? In that case, the real value of the companies you are buying stock of would also decrease.

 No.249

>>170
The fed is printing more money then there is demand. As the demand falls, inflation rises, and if not checked can lead to hyperinflation.

 No.261

>>170
Basically all money on earth would devalue to nothing crashing hte world economy.

China has been buying up Gold at an incredible rate waiting for the day the dollar dies.



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