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