how can americans invest money if there's hyperinflation....us d vs can d 2006 1.14 now 1.02 12% about?

Question

in 2006 the us dollar could buy 1.14 canadian dollar....in 2007 the us dollar could only buy 1.02 canadian dollar....what's going wrong here....america better get their act together or our money is going to be just as good as confederate money after the civil war......what should american invest in if the CD's only pay 6% and our inflation is much greater than that

Answer 1

For starters, you are confusing inflation with currency depreciation. Inflation is simply the increase in domestic price level; it has very little to do with the value of foreign currencies.

What's going wrong? The fiscal situation of the U.S. government has worsened substantially since Mr. Bush took over. His administration managed to implement a tax cut while actually increasing government spending. The budget deficits have increased, and so has government debt.

But to answer your question, in case of a major inflation in the U.S. you should invest in foreign assets. There are plenty of stocks, bonds, and real estate outside the U.S.