China is a partner of US monetary woes. The Chinese are building their own debt on the dubious foundation of the U.S dollar and other Asian economies have been forced to go along for the ride. When the dollar falls, many other countries will suffer as well.
The offset, logically in found in commodities. Investing in oil stocks make sense, for example because the price of oil is rising and as it becomes more difficult to drill oil. Those companies that own drilling and exploration operations will benefit. It makes sense to invest in other commodities as well.
The tangible asset play is clearly where future value is going to lie. With China’s never ending need for coal, iron, ore, tungsten, copper, oil and other metals, the future of tangible markets is the bright spot in the gloommy financially based economics of the world.
Once US reach the national credit limit, monetary policy will be forced to retreat. When that happens, traditional investors and their savings account are going to be hit hard. The beneficiary of the falling dollar will be the investor whose holdings emphaasize tangible value of goods : resources and precious metals.
Every danger to one group of people is invariably an opportunity to another. It all depends on where you position yourself. Those investors positioned in dollar based investments are going to suffer the loss of purchasing power when the dollar’s value disappears. Those who have moved their investments to higher ground will benefit from the change.