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Breakfast With Dave 28 January

We will double our exports over the next five years, an increase that will support two million jobs in America (From The President's State of the Union Address).

A summary of interesting points from my perspective:
- this goal of doubling exports is going to include a depreciation of the U.S. dollar  (or may be it will never reached and it is just a "desire" - my view)
- long-standing bullish call on commodities in general, and in precious metals in particular
- FOMC: the pace of economic recovery is likely to be moderate for a time (improved from last month), but no mention to downturn in housing (!!!). This is a recovery where “bank lending continues to contract”, consumer spending “remains constrained” and “employers remain reluctant to add to payrolls.”
- increased inventory backlog and collapse of new home sales will exert downward pressure on housing values.
- the mountain of money sitting on the sidelines (the proverbial ‘dry powder’) is being put to work all right … in the fixed-income market!


Disclosure: no positions