Moon Kil Woong

Commodities Soar - But Volatility Works Both Ways

The only thing that seems strange is the demand for US Treasuries. Well until the Fed stops buying their own auctions it will be hard to determine real demand there. Even so we see the dollar still weakening.

As far as I can tell people are increasingly moving towards the buy anything camp in light of collapsing dollar. I know someone that just bought 1,000 boxes of magic cards in exchange for US$. Apparently they have more faith in them than greenbacks. That's just sad. Across the board I am seeing asset prices go up for anything that may have the slightest whiff of appreciating as the dollar falls. Thank goodness it's not just collector comics, cards, and antiques. The odds of increased demand in these things will create enough jobs to dig us out of the recession are 0%.

Is the U.S. Dollar Headed for a Mighty Crash? Part I

The Fed, asides from Volker, has been an agent of inflation throughout all my life. It is laughable for anyone to call them the trustees of US currency. If you believe that they believe in a strong dollar policy I have a bunch of derivative backed mortgage bonds to sell you.

Which brings me to the next part, how can Geithner say he believes in a strong policy the same day he dumps another $7.5 billion dollars of our money to GMAC so that hey can unfairly offer lower interest rate loans to customers. Isn't this punishing the good guy, Ford, for not being under the Fed and Treasury's thumb? Absolutely. I believe that the past and current Fed and Treasury are nothing but two bit tyrrants. Their actions are those of power mongers who wish to control the economy rather than let it operate efficiently simply because it doesn't insure their political agenda of either staying in power or lining their own pockets.

This is the main reason the dollar will inetitably keep sliding. They would rather hold on to power as long as possible and see hyper inflation or stagflation than risk loosing their appointment and reighning in the printing presses and dealing with the here and now (a very nasty hangover from Greenspan, Bush Jr. and company).

Thanks for the article Gary Dorsch.

Bailouts, Inflation and a Golden Future

Production is dropping in all commodities as their demand drops. Gold miners are cutting back too because they gauge their future prospects correctly on demand for stuff like jewelry not on people wanting to use it as big metal bricks.

That's what happens with it when there is not enough demand for a commodity: just like grain, steel, oil, etc. They become inventory and then become ripe for speculators.

On other aspects of the author, I agree the priming the pump is going way too far with little to no effect. Thus rising dollars and falling demand can only inevitably lead to a re-balancing of the dollar with respects to available goods and services in the long run.

But in the short term, I think de-leveraging due to lower credit usage and asset destruction will still rule. $800 billion does not make up for $ trillions lost.