The Demise of the Dollar... and Why It's Great for Your Investments

by Addison Wiggin

Book Overview

As the dollar continues to weaken against other currencies, it is increasingly clear that this event will have a significant impact on investors and consumers around the world. Never before has the "reserve currency of the world" been so burdened by debt or suffered from such serious structural imbalances. The Demise of the Dollar . . . And Why It's Great for Your Investments examines the reasons for the dollar's current slide and offers an up-close...

• Format: Paperback
• Language: English
• ISBN: 0471746010
• ISBN13: 9780471746010
• Release Date: January 2005
• Publisher: John Wiley & Sons
• Length: 218 Pages
• Weight: 0.80 lbs.
• Dimensions: 0.6" x 6.1" x 9.0"

Customer Reviews

Bartlett1

Solid review of where we are and what we can do to lessen the impact of the weak dollar.

New and improved

I read the first edition in early 2006, and it's a little breathtaking how many of its big-picture prognostications have come to pass -- especially the collapse of the housing market and the dramatically shrinking purchasing power of the bills in our wallets. Now, as the dollar tanks to record lows relative to other currencies, and we're reaping the whirlwind of endless money and credit creation by the Federal Reserve, this new (and considerably updated) edition examines where we go from here. If anything, the historical examples cited ring even more true with the passage of the last two years. And while the outlook going forward is bleak, it is absolutely not hopeless. For anyone who suspects this might be another "goldbug" head-for-the-hills sort of book, rest assured it's not. It concludes with a host of sensible suggestions that, yes, include gold, but also a number of other hedges against a falling dollar that are worth considering as your cash buys less and less every day.

Great Read!

It was incredibly educational and tied together different causes and effects of the dollar's demise quite well. I have recently begun recommending it to others. It also gives great investment examples from some of the world's greatest investors such as Warren Buffet and George Soros. A must read for people looking to have their money work for them well into the future no matter how bad things get here in the U.S.. It doesnt' take a prophet to see where things are going. A little knowledge and logic can lead to sound conclusions.

The Unpleasant Truth

I'm not a sophisticated investor, but I am a good observer of the U.S. and the world. The author presents clearly and convincingly the effects of America's staggering debt which is about $8,000,000,000,000...yes that's trillions we owe the world. He tells about our virtually worthless currency and also about our insatiable thirst for oil. He gives us truthful information that precious give us. It isn't difficult to see that we are headed for severe inflation or depression. Fortunately he does direct you as to how you can protect youself financially. I am of modest means and can't employ all of his suggestions, but I am invested in precious metals, oil and natual resources. BTW, like it or not, China will be the next super power economy--the author's suggestions will also help you to take advantage of this emerging fact as well.

Times Are Changing

Addison Wiggin explained the concepts he's informing us about in a very likeable manner and latest quick read, "Demise of the Dollar." Wiggin touched on many concepts and wrote them in a way that will interest us "non-economist-but-interested folks." The Helicopter theory, pathological consumption, and wealth-driven consumption are delved into. Wiggin noted the many positive to a weaker dollar in comparison to a stronger one. He also gives us aspects of this weaker dollar that can benefit the investor, making this an appropriate and contemporary book. He notes accurately that the greenback is not the mainstay, and explains why and what the potential ramifications will be. American fiscal actions and solvency are explained with some focus on the individual financial habits and psychology of the American consumer, whose spending on consumption propels 2/3 of the American economy. American government and consumer debt is noted. As for the consumer, average per capita debt ratio is the highest in U.S. history, and home equity ownership is the lowest in U.S. history. Wealth in residential real estate, propelled low interest rates, interest-only loans, significant speculation, and pop-flipping, Americans may well be in a state of denial about the strength of the U.S. economy and their personal economic situation: a high percentage of net worth allocated in residential real estate - the house they just happen to be living in. All it will take is an economic hiccup. And, if there is no hiccup, we have wages that are flat and even declining in comparison to housing values and increasing levels of taxation. There are many factors involved in valuation of currencies. As Wiggin notes the positives of a weaker dollar, Obviously, a weaker dollar benefits the U.S. economy as it's more interdependent upon our global economy. A weaker dollar can stimulate the creation of jobs, as well as maintain them. The American policy makers claim that want a strong dollar and promote and ostensibly proclaim a "strong dollar policy." This is not the case, as we all know. But the question of the future may be: how low is good, and how low becomes bad? Worth noting is that currency reserves held by foreign countries in part, are positioned by confidence in a currency and an economy. The American economic engine may very well continue to plough along, with high debt ratios spurring longer work hours and most importantly, boosts in per capita worker efficiency. As of August, 2005, the dollar is actually strengthening a bit. Economists can explain the past, but they can't foretell the future, just like the rest of us.