May 12, 2006
Do not ignore these trends - OIL, Gold, US Dollar, Information
I will never be a reporter but I know a good story when I see one.
The case for the disappearing US dollar is real. The case for hard assets is a good one. They are both well in motion. Even if they stop today and reverse, a cascade of effects has been set in motion.
I have touched on it over the months here by following the Gold trend and goofing on the strengthening Canadian dollar that even the Canadians cannot believe.
NO ONE WANTS US DOLLARS. Buffett does not want them, global traders do not want them.
Big media has been negligent and done a horrible job covering this story so you need to find a better source.
I judge things based simply on price. The price of an asset tells you what's going on.
If you want the real story and good facts from an expert - who, more importantly, has been right, read this.
My instincts says our leaders have lost control. It is not in their best interests to tell you that. It is a big, sometimes bad world that has developed quickly the last 5 years financially and don't be fooled - we do not have a handle.
Hedge Funds, derivatives, easy money, huge transfer of wealth, lack of leadership - IT IS A STEW that is boiling with chefs that are not fully prepared.
The markets have been calm and I do not think that can last. I am watching funds that ARE LONG VOLATILITY - explode with 10 and 20 percent months. Those runs do not last, they end with an event. I have no idea when, but we are closer than we were 8 months ago when these same funds complained that their poor returns came from a lack of volatility.