Elections, the Dollar, and How to Hedge Against Dollar Decline

The word in Washington is that "Ashcroft is out". Attorney General John Ashcroft had been appointed to the Bush Cabinet as a token to right wing elements of his party. But polling data indicates that many moderate Americans have strong objections to the loss of civil liberties as a result of Ashcroft's policies. Reports indicate that Bush has signaled that a resignation from Ashcroft, before the elections, would be appropriate.

Kerry and BushSpeaking of polls: With polls showing Bush Approval ratings down to 44%, there could be real political change in the works.

Bush's approval ratings are at the lowest since his election.

It appears that 98% of Republicans are strong behind Bush and 98% of Democrats behind Kerry. But, the number of moderates and independents that are indicating "undecided" or "unfavorable to Bush" is increasing. At this point Bush has raised over $250,000,000 and has about $70,000,000 left. Kerry has raised about $125,000,000 and has about $40,000,000 to spend. But recent weeks have caused an upsurge in contributions to the Kerry Campaign. There are quiet stories hinting that a few very wealthy men, one from Texas, are willing to fund a campaign to discredit Kerry.  Money talks in America and only time will tell if this impacts the elections. 

Every time the dollar declines it means the dollar is worth less, as related to foreign currencies.  This makes American goods cheaper for the world's buyers, but more expensive for everything that American's import.  But it may make more sense for Americans to put their money in gold, silver, diamonds, income producing real estate, food production, farms, dairy operations, and take their money out of banks, stock markets, financial companies. Essentially as the dollar declines, investment in foreign currencies of strong growth nations may make sense. I personally purchased currencies from other nations and realized a substantial increase in value. The risk in foreign investments is the same as it has always been historically. Control, safety and trust are always a factor.  Gold and Diamonds are two historic hedges against inflation and currency fluctuations.