LJ

Bernanke Brushes Aside Inflation, Focuses on Growth

I think the mainstream media has downplayed the fact that the global stock bubble, and the temporary strength of the US dollar, are also caused by the weakness of yen because of the carry trades. Regardless of the outlook of the US economy, any weakness in the Japanese economy will also translate into the strength of the US dollar. By the same token, any good news in the Japanese economy will drop dollar to hell, causing sell-off in the global stock markets.


finance.yahoo.com/q/bc...

Why Commodities Are Likely to Struggle in 2008

Are you saying that all those who are long commodities are speculators and those who are short commodities are good guys?

How about those central banks determined to dump dollars and buy gold? What about the country whose gold reserve holding was up by 2.8% in the 1st quarter?

Don't forget that the commodity prices suddenly dropped right at the time of the interest rate announcement. The US has been running into platinum deficit for many years. Do you think the collapse of this so-called "commodity bubble" will end you up with more platinum?