Highlights/Thoughts
1. Fed turns a profit of $80.9 bil and puts it in the US Treasury
2. US Fed Reserve becomes the most profitable bank in history
Ok. You're probably wondering why this article about our Fed turning a profit in 2010 is here. It is relevant for all of us in terms of what we do with our money post RV. There are many who believe that the US dollar is going to go away. They cite the insane prices of gold as an indicator of this, among other things. There are also those who say that the US dollar will grow stronger post RV because of all the dinar the US holds. Given that this is true, it does stand to reason that the value of the US dollar will rise post RV. It also stands to reason that you will see a drop in the price of gold. In any case, having a strong reserve does help the value of the dollar. Combine a strong reserve with an even stronger reserve post RV and you've got yourself a really good situation. The question is how long can we capitalize on this? It will depend on how much we continue our crazy spending (deficit spending). In summary, you should be good holding US dollars in the short-term, but don't bet the farm on it. If the US continues to drive up debt, you'll see the value of the dollar fall again. Talk to a professional about diversifying your investments to protect your assets.
Look at the damage deficit spending caused
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