Copyright 2012 by John T. Reed
The euro currency was a very bad idea. I bad-mouthed it in 2010 when my book How to Protect Your Life Savings from Hyperinflation & Depression
It has only gotten worse and appears likely to go nowhere but down, if not out of existence.
I liked Sweden, and still do, except that they are members of the European Union and thereby obligated to join the Euro Zone. They are dragging their heels on that. A referendum in 2003 found 56% of voters opposed to joining the euro. Before you join the Euro Zone, you have to join their Exchange Rate Mechanism for at least two years. Sweden says joining the ERM is optional, and they have not done it, therefore that lets them out of their obligation to join the Euro Zone.
Whatever. When they get a totally clean break from the euro, I will take another look at them, but not now.
Similarly, Denmark is not obligated to join the Euro Zone, but they are already members of Exchange Rate Mechanism II meaning their currency is pegged to the euro.
So I have decided not to buy Danish krone and I previously decided not to buy Swedish krona. I do not want any currency that has anything to do with the euro directly, indirectly, or in the future.
I took another look at Norway. Norway has some good numbers but they rank 40th in economic freedom. Ouch! Even the U.S. ranks 10th and I am pretty unhappy about economic freedom here.
I’m starting to wonder about the European Union, too. That is the 27-nation common economic and travel zone. The Euro Zone is a 17-nation subset of the EU.
Switzerland, the other European nation whose currency I recommended, is not a member of the EU let alone the EZ. It was one of the last nations to even join the U.N. The Swiss are not joiners.
Good. I still recommend Swiss currency, but I have not found their banks friendly to Americans.
So I can only find your foreign currencies that I am willing to invest in: Australia, Canada, New Zealand, and Switzerland.
So be it.
There are still other assets from which to take refuge from future U.S. hyperinflation, like relatively liquid hard assets (metals, forever stamps, other commodities, etc.) and hard assets like real estate, cars, business inventory, and so on. I wish there were more good foreign currencies, but there aren’t. Sign of the times. All the more important to buy the few good ones while you still can.
John T. Reed