Chris Nelder’s frank and conversational piece on moves the big money is making into hard assets:
America is quickly learning that a purely service economy is simply not sustainable.
And the final pillar that the dollar stands on — its role as the world’s reserve currency, and the primary oil trading currency — is slowly eroding. Whether you argue it on the basis of money supply or fundamental value, the dollar is going to remain weak and under attack.
The smart money is responding by seeking hard assets that are either not denominated in dollars, or not correlated to them. Resource-rich countries like Brazil, Australia, and Norway have been the beneficiaries.