[WanderPanda]

Where did we end up if shorting your currency is the only way to go? I could not sleep well with the potentially unbounded loss

[imtringued]

You short the USD by borrowing in USD, spending USD while it is still valuable and then wait for it to devalue. Deflation is a bad thing so the Fed won't let it happen.

Of course the flaw with this is that I get 4% interest on personal loans so I actually can't make money off of this strategy.

[AnimalMuppet]

Gold. Gold essentially functions as a short on paper currency. If you're wrong, you'll lose money, but it won't be an unbounded loss.

[throw0101a]

Gold isn't as much of a hedge as most people think. Two papers by Erb & Harvey cited in the podcast:

* https://www.nber.org/papers/w18706

* https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2639284