The USA may continue weakening the dollar as a last resort measure to combat China's manipulation of the yuan. By refusing to allow the yuan to float and thereby appreciate normally in the free market, China is able to maintain an artificially high / unfair export trade with other nations (---as if the trade imbalance is not already high enough in China's favor).
If the USA does weaken its currency aggressively (as many nations are considering) in an attempt to create some balance of trade with China, then this will result in inflation.
Inflation means more $$$ available in the market to buy the finite number of vintage baseball cards that are out there. Therefore, the prices of vintage cards go up.
Inflation is not necessarily a bad thing. For those holding precious metals, collectibles, etc, the values of those assets tend to go up with inflation. If you have a mortgage, inflation is usually a good thing, because your salary will rise while your monthly mortgage payment stays fixed over the same period, making it much easier to pay off your house. Moderate inflation is quite healthy and normal for a stable, growing economy.
Now, hyper-inflation (ie, having to bring a wheelbarrow of cash to the grocery store to buy a loaf of bread)...that's another story. If your local currency collapses, you better be holding precious metals or other assets that you can trade and barter for basic necessities.
[NOTE: Just my personal thoughts and musings on the topic. I am not a financial professional nor an economist.]
|
10-10-2010, 07:38 AM
Similar Threads
Hybrid Mode
