Maybe liquid assets should be diversified across currencies

Reader comment on: Rattner on Income Inequality

Submitted by Alice Bloggs (United States), Nov 8, 2010 10:44

I agree with your remark about QE2 penalizing individuals who have been trying to save for their own retirement. Some time ago my husband and I moved some of our liquid assets into foreign currencies, such as Australian dollars (and I'm glad we did!).

On the other hand, are you sure QE2 only hurts "small" savers? I'm thinking that China is concerned about its huge investment in our country being devalued. I'm guessing while Obama is in Asia, the Chinese will be voicing their concerns to him. And I'm guessing he'll be countering that they are artificially depressing the value of their currency. Of course the Chinese could counter by refusing to buy any more of our debt. (Aren't they already saying "no" to our bond sales?)

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