Federal Reserve officials on Thursday downplayed
the consequences of the falling U.S. dollar, pounting to deflation
as a lingering threat. The dollar has fallen 7 percent so far
this year and likely has become a funding vehicle for bets on
higher-yielding currencies in growing emerging markets. So how
should investors guard their portfolios? Jim Rickards, senior
managing director of market intelligence at Omnis, shared his
insights.
“[The Fed is saying] we’re nowhere
near the all-time lows, we’re back to where we were 15
to 18 months ago…So they look at that and say we’ve
been there before,” Rickards told CNBC.
“My only view is that it’s a much more unstable
and dangerous world: In the '80s, our creditors were Japan,
Europe and the [Arab states]—and the three of them were
utterly dependent on the U.S. for their national security.”
