According to the Economist, the currencies which are undervalued against the US dollar and the Euro include those of China, Indonesia, Russia, Canada, South Africa, Mexico and Hungary.
Daily chart: Big Mac index Jul 26th 2012,
In other words, it could, in theory, be worth investing in countries like China, Indonesia and Russia.
"More than three years after President Barack Obama was swept into the White House, he and Congress have not delivered a plan that reduces the government's more than $15 trillion (£9.7 trillion) of debt, or one that stops it rising...
"The imminent retirement of the baby-boomer generation means that government spending on pension benefits and healthcare will reach unsustainable levels unless those benefits are scaled back, taxes increased or there is a combination of both...
"Economists at Barclays, for example, are forecasting a compromise that will deliver fiscal tightening of about 1.3pc of GDP. That will be a drag on growth next year, but is less likely to force the US into the double-dip camp with Britain and large parts of Europe...
"Having the global reserve currency and the world's largest and most liquid government bond market are real advantages..."
