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Buy Rydex Strengthening Dollar (RYSBX) Exchange Traded Fund (ETF) |
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Friday, 05 September 2008 |
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By Charles Delvalle Republicans like to call themselves the party of fiscal discipline, but if you dig into the numbers, you might find a surprising answer.
Since 1938, Democrats increased the budget deficit by about 8.3 percent while Republicans grew the deficit by 9.7 percent - a nearly 20 percent increase.
Perhaps most startling is what happens when you change the sample date from 1938 to 1946.
From 1946 to today, Democrat presidents pushed the deficit up by 3.2 percent per year. Republican presidents, on the other hand, increased the budget deficit by 9.7 percent (thanks to Reagan and Bush Jr.). In other words, since 1946 Republican presidents have outspent Democrat presidents by almost 3-1. So much for the party of fiscal discipline.
This matters because huge budget deficits decrease the value of the US dollar. So odds are, if a Democrat becomes president, we may actually see deficits decrease, and that would lead to a stronger dollar.
The easiest way to play a stronger dollar is by buying the Rydex Strengthening Dollar (RYSBX) Exchange Traded Fund (ETF). This ETF moves up two percent every time the dollar moves up one percent.
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1. Written by ali, on 06-09-2008 19:53 good article | |