Wednesday, November 28, 2007

My advise for 2008

For our OFWs, particularly in Saudi Arabia and other countries in the Middle East:

1. Use your riyal to buy Iraqi Dinar. And watch your gains in 12 to 18 months, and you will be surprised!
2. If not, keep your money in Riyal or Kuwaiti Dinar. Again, if not convert them into Pesos.

Why? Read on...


From United Press International (UPI)

Forecast: U.S. dollar could plunge 90 pct

RHINEBECK, N.Y., Nov. 19 (UPI) -- A financial crisis will likely send the U.S. dollar into a free fall of as much as 90 percent and gold soaring to $2,000 an ounce, a trends researcher said.

"We are going to see economic times the likes of which no living person has seen," Trends Research Institute Director Gerald Celente said, forecasting a "Panic of 2008."

"The bigger they are, the harder they'll fall," he said in an interview with New York's Hudson Valley Business Journal.

Celente -- who forecast the subprime mortgage financial crisis and the dollar's decline a year ago and gold's current rise in May -- told the newspaper the subprime mortgage meltdown was just the first "small, high-risk segment of the market" to collapse.

Derivative dealers, hedge funds, buyout firms and other market players will also unravel, he said.

Massive corporate losses, such as those recently posted by Citigroup Inc. and General Motors Corp., will also be fairly common "for some time to come," he said.

He said he would not "be surprised if giants tumble to their deaths," Celente said.

The Panic of 2008 will lead to a lower U.S. standard of living, he said.

A result will be a drop in holiday spending a year from now, followed by a permanent end of the "retail holiday frenzy" that has driven the U.S. economy since the 1940s, he said.

Here is the link to the news.

Actually, I am not sure, I agree with the above forecast. What I will watch out in 2008 are indicators such as:

1. OPEC countries demanding Yen or Euros or Yuan for their oil.
2. De-pegging of some currencies such as what Kuwait did in May 2007.
3. Diversification of trillion dollar holdings of the Chinese and Japanese.
4. The certainty of the Middleast Unified currency (2010 launch) not peg to US dollar.
5. Countries using US dollars as domestic currency contemplating to launch their own.


Hoping all will be well in 2008. Mabuhay si Bush, hehehe.