whidbey

Thursday FX View: Strong Chinese Car Demand Forces Safe Haven Rethink

The car demand in China is based on stimulus and likely will not last without more stimulus, which will likely come. The rest of it is all speculation since G8 is supercilious and has no authority to do anything. It is a political showcase for the participants. The rush in this country for cap and trade is aimed at this crew. All in all we are hard up for leaders who know much about the major economies and how to recover them. Trouble for some time I think.

Wednesday FX View: Behind the Garden Wall

I like the idea of caution and diversification to into other currencies, and dollar shorts, but we must recall that during inflation stocks often run hard and act as hedges. My bets are on Brazil, Australia, Canada and UDN. I will add water energy and agriculture for the next run which will like start about the 20th of June, more or less.

I am not hopeful when the administration can worry openly about inflationary pressures form its spending while shoveling with both fists. That seems a little schizoid.

Why You Should Hold Aussie / New Zealand Dollars and Gold

Good analysis. The facts are discouraging, but first we must cope with deflation in the majority of the global economy. So long as there is excess capacity, unemployment, not mention consumer debt at extraordinary levels (lower consumption) - we will face deflationary pressures. That will lead to aggravated money printing by all of the cheating governments, so eventually we will get inflation. It come on little feet in the night as we discover the FED has no guts for reducing the money supply, and Congress applauds and we watch in horror as they pump the brakes and the bus heads for the brick wall!!! Excuse me I got overly involved.