Customer Reviews

The Demise of the Dollar... and Why It's Great For Your Investments (Demise of the Dollar & Why It's Even Better for Your Investments)

5 star:		(22)
4 star:		(18)
3 star:		(12)
2 star:		(10)
1 star:		(15)

 

 

I am a deep believer in most of the conclusions Mr. Wiggin presents. I have been following him and every single one of his "cohorts" for almost a decade and am very familiar with the conclusions he espouses. I bought the book with the hope that it would summarize the conclusions AND THE LOGIC/DATA BEHIND THESE CONCLUSIONS.

Unfortunately, the book is extremely poorly written. It has numerous unintentional, grammatical errors (did anyone proofread the book?), but this is neither my primary nor secondary complaint. My main complaints are:

1) The author bounces from issue to issue, conclusion to conclusion, often changing subjects within paragraphs. The book lacks structural logic. This makes it nearly impossible for even a seasoned reader of his ideas to follow.

2) The author repeatedly states his conclusions but fails to then back them up with data or logic. Whatever happened to the "scientific method?" Any opponent of his conclusions will have an easy time dismissing his conclusions. Does he really have data for most of his conclusions? I doubt it - even though I am from his camp.

It saddened me to see "our conclusions" so poorly presented. No wonder most economists view these conclusions as harebrained.

I spend a lot of time travelling overseas. And I can tell you first hand, one doesn't need to read tomes on the coming collapse in the dollar to see what lies ahead. You can feel it every time you reach for your wallet or pay for a coffee.

The dollar is quickly entering the circle of second-class world citizenship. That said, Wiggin's account is artful, direct, and thorough. I liked the historical aspect. But I especially like the way he's hitting on what's happening today. That includes all the things nobody seems to want to talk about or admit.

But there's no denying, if we don't face up to them now... the greenback is doomed. And with it, all the things that depend on America keeping a stakehold in the world economy. Wiggin makes that point and makes it hard. This is an eye-opener, worth reading.

Addison Wiggin explained the concepts he's informing us about in a very likeable manner and latest quick read, "Demise of the Dollar."

Wiggin touched on many concepts and wrote them in a way that will interest us "non-economist-but-interested folks." The Helicopter theory, pathological consumption, and wealth-driven consumption are delved into. Wiggin noted the many positive to a weaker dollar in comparison to a stronger one. He also gives us aspects of this weaker dollar that can benefit the investor, making this an appropriate and contemporary book. He notes accurately that the greenback is not the mainstay, and explains why and what the potential ramifications will be.

American fiscal actions and solvency are explained with some focus on the individual financial habits and psychology of the American consumer, whose spending on consumption propels 2/3 of the American economy. American government and consumer debt is noted.

As for the consumer, average per capita debt ratio is the highest in U.S. history, and home equity ownership is the lowest in U.S. history. Wealth in residential real estate, propelled low interest rates, interest-only loans, significant speculation, and pop-flipping, Americans may well be in a state of denial about the strength of the U.S. economy and their personal economic situation: a high percentage of net worth allocated in residential real estate - the house they just happen to be living in. All it will take is an economic hiccup. And, if there is no hiccup, we have wages that are flat and even declining in comparison to housing values and increasing levels of taxation.

There are many factors involved in valuation of currencies.

As Wiggin notes the positives of a weaker dollar,
Obviously, a weaker dollar benefits the U.S. economy as it's more interdependent upon our global economy. A weaker dollar can stimulate the creation of jobs, as well as maintain them. The American policy makers claim that want a strong dollar and promote and ostensibly proclaim a "strong dollar policy." This is not the case, as we all know.

But the question of the future may be: how low is good, and how low becomes bad?

Worth noting is that currency reserves held by foreign countries in part, are positioned by confidence in a currency and an economy.

The American economic engine may very well continue to plough along, with high debt ratios spurring longer work hours and most importantly, boosts in per capita worker efficiency.

As of August, 2005, the dollar is actually strengthening a bit.

Economists can explain the past, but they can't foretell the future, just like the rest of us.

Maybe I expected too much. I would say give a couple of chapters on how things are terrible and the dollar is worth nothing, then use the rest of the book giving investment advice. Unfortunately, he did just the opposite, pounding us over the head for chapter after chapter about the dollar and debt and all the other bad things that are happening. Very little specific investment advice. Skip it.

A rehash of his "Financial Reckoning Day" and if you ordered via Amazon.com you received a six page email invitation to subscribe to an options trading financial newsletter.

Though not nearly as fun to read as Empire of Debt, it's an excellent read about the current state of affairs in the US. This is a no-nonsense, un-shellacked account of the US economy and answers some of those questions we all have floating around in our heads (such as: The media and government say the economy is doing great but why does it seem like I have less money to live on each year?) If you're feeling depressed lately, you may want to put this one aside for awhile. But if you desire to learn how to profit from the current US slide, pick it up.

This writing team likes to take a subject and work it into a full length book by repeating the same theme endlessly. They should have created a long magazine piece or a booklet, but as financial wizards they know where the money is. Nevertheless, this book and its subject may save you a fortune if the demise of the dollar occurs.

I was dumb enuf to pay for a book that was nothing more than a come-on (marketing tool) for the host of Agora newsletters, etc. he publishes. There was nothing, repeat nothing new in the book. The only part slightly of value was a list of types of investments to consider. And he gave that chapter away a few days later in "The Daily Reckoning". He just collected a bunch of short essays (read chapters) already published for free, called it a book, hyped it, and got suckers like me to buy it. What a waste of time--and money! Never again!

Wiggin's "The Demise of the Dollar" is an excellent treatise on both the history of the dollar as a currency and the chain of events that established it as fiat money rather than gold-backed currency. He effectively weaves various economic theories into sound arguments as to how/why the dollar is under strain--from the enormous debt level the country is sustaining relative to GDP to the decreasing support the dollar is receiving globally from foreign governments purchasing the dollar as their reserve currency of choice.

Probably the only improvement would have been to focus more effort on alternative investments--gold is heavily (pardon the pun) promoted, but commodities in general are lacking as well as a number of alternative ideas on where to put money in defense, or better yet offense, in the case of inflation. All in all though, worth the read.

Wiggin tells it like it is in a no nonsense gut wrenching way.
I am smiling through the whole book. As a commodities and resource guy I couldn't agree more that the dollar is out and gold is definitely in.

Wiggin says.. "The dollar is the single biggest element of risk in the world of finance today. Rearrange the current system of world finance ever so slightly. Let confidence in the greenback falter, and the mighty dollar could go up in flames."

He goes onto give us a glimmer of hope...A golden Glimmer!

"There are many ways to hedge against this risk...Better still, there are many ways to profit from the likelihood the dollar will fall."

Well I am not positive what's first on Mr. Wiggins mind as the best hedge tool, but him and I are certainly on the same track and that hedge tool is a four letter word...Gold!

Wiggin says " The solution comes from repositioning, and the best cues for when, how , and where are found in the gold market." Amen! I couldn't agree more! This book is a must read for all those who have worshiped the paper currency and have shunned the resources, this book will show you the light...Bravo!