March 19, 2008 at 07:27:40

View Ratings | Rate It

Is Dick Cheney Set To Profit From Dollar's Drop?

By Marc McDonald (about the author)     Page 1 of 1 page(s)

opednews.com     Permalink

For OpEdNews: Marc McDonald - Writer

By MARC MCDONALD

The plunging dollar has taken a beating lately on international markets. But at least one wealthy investor may be set to profit from the dollar's decline: Dick Cheney.

Back in June 2006, Kiplinger's Personal Finance magazine reported that Cheney's financial advisers were apparently betting on a rise in inflation and on a decline in the value of the dollar against foreign currencies.

Cheney and his wife, Lynne, the magazine noted, had between $10 million and $25 million in American Century International Bond (BEGBX). As Kiplinger pointed out, the fund "buys mainly high-quality foreign bonds (predominantly in Europe) and rarely hedges against possible increases in the value of the dollar. Indeed, its prospectus limits dollar exposure to 25 percent of assets and the fund currently has only 6 percent of assets in dollars, according to an American Century spokesman."

Assuming Cheney still holds the fund, he has done well: BEGBX returned 8.3 percent in 2006 and 9.9 percent in 2007. And if he was counting on a dollar decline, of course, he's done well in that regard, as well: in recent days, the dollar has continued to plunge to new all-time lows against the euro. The dollar has also fallen to 12-year lows against the yen. The weak dollar trend looks set to continue as the Fed continues to slash interest rates.

Economists have noted that the weak dollar stems from America's titanic fiscal deficits, which have soared as a result of the disastrous Iraq War.

It's notable that Cheney once claimed that "deficits don't matter." But by banking on a declining dollar, it's clear that even Cheney knows this is bullsh*t and that deficits do indeed matter.

 

 

View All Book Recommendations

Share this page: (what's this?)                   Tell a Friend:

                                                      (More...)

 

Most Popular Articles in the Last 2 Days (by Recommend Emails) Kucinich: Why I Voted NO by Dennis Kucinich House Passes Weak Public Option Health Care Bill, Selling Out Women's Rights. Includes Democrats Who Voted Against Bill by Rob Kall Paid Lying: What Passes for Major Media Journalism by Stephen Lendman Rendition Prosecuted Abroad While U.S. Courts Do Nothing by Mary Shaw Time to call it what it is, and to demand it become what we were promised by Ed Tubbs “A Federated State Like Switzerland is the ONLY Solution for Israel/Palestine” Yehudi Menuhin by Jay Janson Fort Hood's Killer Shrink: Was He One of the Army Docs Pressured to Misdiagnose PTSD in Soldiers? by Harkavy A Special Report -- The Crazy October Surprise Debunking by Robert Parry Kucinich's Brave Health Vote Vs. Obama's Failed Promise by Lee Stranahan Hillary, Congress Bury Goldstone Report, Shirking Accountability for US Role in Gaza Raids by Eileen Fleming Go To Top 50 Most Popular