A case for Gold?

As I have mentioned from time to time, I am a big Kathy Lien fan...I own her book. She is very knowledgeable of the history and the factors that went into the Forex market we see today. Definitely knows her stuff. What she thinks about the Dollar short term, is what she thinks about it long term. Bearish...

Interesting, because this portfolio owns Gold in case of some crazy economic event. This is short, succinct and compelling:

At the same time, this past week, a number of arguments have surfaced questioning the long term viability of the U.S. dollar. On Wednesday, the Financial Times carried an Op-Ed piece about how the U.S.’ Triple A credit rating could be at risk which if true would crush the confidence of foreign investors. Today, the NY Times carried its own Op-Ed piece by Nouriel Roubini, aka “Dr. Doom” about how the Renminbi could challenge the dollar’s reserve status. Although he does not believe that the Renminbi would replace the U.S. dollar as the reserve currency within the next 10 years, he does argue that the U.S. government’s aggressive spending and borrowing habits puts the dollar’s status at risk. He also lays out why he believes the U.S. is following the path of Britain, whose currency was once the dominant reserve currency before losing that title to the U.S. after becoming a net debtor and a net borrower nation in World War II. We also believe that the dollar will not be “replaced” in the next 10 years, but central banks will start increasing their holdings of other currencies at the expense of the U.S. dollar.