Forget All Currencies
Playing the currency game is tough. Maybe you’re bearish on the dollar, or maybe you’re bearish on the Euro. The problem is to short the Euro, you might be long the dollar. Well, what if you are negative on all currencies?
I’m negative on all currencies, because the current global economic trend is a competitive devaluation. A race to the bottom. Many major economies around the world are attempting to devalue their currencies in an effort to drive exports. Unfortunately, when the other guy is doing the same, isn’t it basically just a lose-lose scenario?
As Peter Schiff says in one of his recent posts:
At the risk of beating a dead horse, let me reiterate my central thesis with respect to currency valuation: just as it is always better to be rich than to be poor, it is always better to have a strong currency than a weak one. Although this simple maxim puts me into conflict with much of the economic establishment
As Schiff says, the economic establishment is solidly in the camp of devaluing currencies. As such, you should short all currencies. And the only way to short all currencies it to own gold.