Central Banks all over the world buy or sell the USD to ensure that their respective currencies trade within a certain margin of the USD. They do this to maintain the value of their respective currencies relative to the USD. Have any of these central banks ever thought of what they will do if the USD goes into free fall? Will they chase the USD down?
If you join the dots in today’s Bloomberg’s news headlines, you will see a global currency crisis unfolding.
- https://www.bloomberg.com/news/articles/2018-01-25/a-doomsayer-s-guide-to-the-dollar-and-why-it-could-keep-plunging
- https://www.bloomberg.com/view/articles/2018-01-25/the-treasury-doesn-t-need-a-dollar-policy
- https://www.bloomberg.com/news/articles/2018-01-25/rubin-de-weaponized-currencies-leaving-mnuchin-little-leeway
- https://www.bloomberg.com/news/articles/2018-01-24/markets-are-about-to-get-ugly-according-to-these-u-s-eco-charts
- https://www.bloomberg.com/view/articles/2018-01-25/why-trump-s-davos-speech-should-concern-investors
Bloomberg has run all these very telling headlines in one day. This is what you should be discussing with your financial adviser.
- Are my financial investments safe?
- How can I protect my financial investments from a global currency meltdown?
- How can I protect the cash that is lying in my bank account?
- How can I profit from a global currency crisis?
These questions should not sweat a good financial adviser.