In 2 months when gold is $1350 per oz, you will say "I hope gold will correct to $1200 so i can buy more of it" Gold will not drop below 1100 again.
Buy yourself some FXA, FXB, FXC, FXY, or whatever you like. There are options on them, too. They don't move very fast. If they stop rising, then you can get out without losing too much. If they continue to rise you are taking advantage of the dollar's fall against them. The "commodity currencies" represented by FXA, FXC, and BZF also rise with inflation.
the dollar is like a drunken sailor who has to ask politely the server of his fav drink if he can pay her back another time another place ( in gold perhaps ) of course she laughs at this but what can he do ? http://newyork.metromix.com/content_image/thumbnail/4x3/150/702370
You've made the assumption that I have money to purchase assets; I need to figure out the best way to prepare when one doesn't have cash to swap into something else.
Are these things guaranteed to deliver you a certain quantity of the underlying even in the event of an extended trading halt? If not, then they pretty much carry the same risk as any other exchange traded fund and these have piss-poor rates of return compared to the others. I'm not talking the leveraged ETFs either. Most of the 1x index ETFs and a good many others completely dust these currency beasts in rate of return and liquidity. So, what's the point?
Lift weights, learn how to fight, buy a gun and lots of ammo. Next, break a bottle and give yourself one mean-ass jagged gapping cut from one of your ears down to your jaw. Then let it heal using nothing but butterfly bandages. Or, learn how to be a farm hand and find one where you can work for food and shelter. However, the above skills would make you even more employable.
I just want to know if I'm lying to myself, or if it really is worth the time to set up a business that works with foreign countries. I work with software and can explore opportunities in Canada, Australia and maybe India. Does my thinking about the Hungarian situation make sense or am I missing something in the picture?
Sorry, I didn't mean to commandeer the conversation, I just saw an opportunity to gain some wisdom from you guys...
The US Dollar will continue to decline in value as long as the Fed keeps printing money. The Fed does not care how low the dollar goes despite their rhetoric. It could very easily go to zero and be replaced by a new world currency. In fact, that may be their plan. Since our country is bankrupt, the Fed will continue to print money to pay our bills, until they are forced to stop. The only thing that will force the Fed to stop printing money, is creditor nations, like China, dumping our dollars because they think that they will become worthless. Only then will the Fed consider raising interest rates and decreasing the money supply to raise the value of the US dollar. However, it is in China's (and other creditor countries') self interest not to trash our economy, because they want us to keep buying their products. So, they will probably continue to get rid of our dollars slowly. The only other thing that will increase the value of the US dollar is a global crisis (can you say Dubai default?) that causes people to seek safety in the dollar. However, it will obviously need to be something worse than Dubai, as it only caused a one day dollar rally. The massive, unpayable debt and the Feds unprecedented money printing adventure can only lead to continued weakening of the US dollar, hyperinflation and higher taxes. The only questions are whether we will have another retest of the March stock market lows, social unrest or another world war. How anyone can look at these facts and believe this is just another recession that we are coming out of is beyond me. Investing in gold or silver, becoming more self-sufficient (plant a vegetable garden, fruit and nut trees, etc.) and ensuring your personal safety by buying a gun and ammo all are becoming necessities.