Over the past 5 months, the Retirefunds of many ordinary people have taken a dramatic downturn. I have spoken to many people who are afraid that they will not be able to retire as planned, and many believe they will work at least 5 to 10 years longer because of the gutting of their Retirefund
The new Obama administration plans on increasing the U.S. debt by the sum of $1 Trillion Dollars!! Wow! With the U.S. debt already running at almost $9 Trillion dollars, it seems to me that this will have one dramatic and profound result in the mid to long term. The U.S. dollar will decline significantly over the next few years. It has to! No currency could take that much watering down without losing value. Not even the almighty USD.
Here in Canada, we will eventually benefit from this devaluation, as well as our own strong position, with the Canadian Dollar rising to par within the next few years, and possibly even higher. We are the only G20 Country that has had a budgeted surplus, every year, for the past 10 years, and even though our government will no doubt spend more over the next two years to help the economy as all other G20 companies will do, Our position will still be stronger vis a vis, our debt. Coupled with the rise of oil and gas prices (yes they will increase, probably double in the next two to three years) and the fact we are the major supplier of energy to the USA, as well have a large percent of the worlds water supply, and many of it's other resources (potash, gypsum, nickel, lumber, seafood, grain, wheat, copper, uranium, gold, diamonds etc) therefore we will benefit the most of any Country, when the recovery does occur (and it will, it's just a matter of time).
I am so convinced of this, that I have sold my personal USD holdings into Canadian dollars. I know I will make money! I hope you do to!
Best of luck in 2009. Let me know what you think!!