Danny/The Digger

Time To Hedge Dollar Exposure

The thesis of Richard Nixon's book "The Real War" was that the U.S. could defeat (not just contain) the Soviet Union by forcing them into bankruptcy by making them match U.S. research and development of advanced armaments. The Soviet economic system simply could not produce sufficient tax revenue to win an arms race against the U.S.

I see a parallel in the Republican/Neo-Con effort to make it impossible for the Democrats to expand (or even maintain) social programs, which they see as an impediment to a capitalist economic system.

Am I reading too much into the recent economic debacle? Was it deliberately contrived or was it due to incompetence? Or does it make any difference, since social programs for the poor and middle class must be put on the back burner for a decade?

Whither the Dollar? Currency Trends and ETFs

I simplify currency risk by investing in Vanguard Energy fund, which is comprised of approximately 50% US domiciled corporations and 50% foreign. The US based corporations are mostly multinationals that derive much of their revenues from operations in foreign countries.

Having invested since 1963 in international and global securities, I have observed the unpredictable and mysterious gyrations of the USD and precious metals. I'm content to "keep it simple stupid" (KISS) by investing indirectly in hard assets: oil, natural gas, coal, uranium for nuclear power, etc. and to employ patience to realize my gains.

Patience is as important as timing.

Despite Lower Oil Inventories, Dollar Surges

Like you, I believe the increasing cost of extracting the remaining reserves of oil from old producing fields, will drive the cost per barrel upward to $200+ /barrel.

That "goal" will be slower to reach now that the huge Bakken reserve is (Montana, N Dakota, Manitoba & Saskatchewan) is now online.