Which currency will be the first to bust?  I honestly don’t know but it’s becoming clear to me that a big bust in currencies is coming.   I know several doom and gloomers have been predicting the demise of the USD for a while but we’ll need to see a few smaller currencies bust first before we ever got to that point.  Ironically, the biggest threat right now might be the Chinese currency.   There is no doubt you’ve either seen or read of how China has huge swaths of buildings sitting empty and idle.   The central planning economy is sucking in resources and not really producing anything of value.   At some point, the cash runs out and all that’s left is a hollow center.

It’s amazing how quick the Euro is falling apart with the sovereign debt problems of Portugal, Ireland, Italy, Greece and Spain and the UK isn’t exactly in the best health either.    I had a draft of this post written in July 2009 and I’m just now getting around to publishing it because the problem is being exacerbated by debt problems all over the world and the clock is ticking.    I have no doubt that a major default somewhere around the world will lead to a domino effect and the world will likely rally to the US dollar.  I’m just hoping it happens by March 2010 because that’s when my call options on USD expire!