With U.S. deficits rising at a record pace, the possibility that America will lose its AAA investment rating is becoming more and more plausible.
While this scenario far from inevitable, there is certainly concern that rising debt levels will decrease the creditworthiness of the U.S. government. The result will be a weaker dollar.
With the U.S. economy struggling as fundamentals weaken and deficits rise, investors would be wise to understand the consequences of dollar weakness and make adjustments to investment strategy.
The most obvious investment choice for a weak dollar is commodities. Jim Rogers, in a recent CNBC interview, discussed his view that commodities are one of the few assets he sees as having improved fundamentals. In other words, it hasn't been negatively impacted by U.S. currency challenges.