Addressing the UN, Iranian President Ahmadinejad assured the General Assembly that Iran's nuclear development is for medical and other peaceful purposes. The development of long range missiles with nuclear war heads has no correlation with their continued assertion that Israel will be destroyed, UN members were to conclude. So what if there is a surprise second nuclear enrichment plant, this will only hasten the day when the freaks and fools meeting at Turtle Bay on the east side of Manhattan think they will no longer have to deal with people like Bibi Netanyahu.
Moving 400 miles west to Pittsburgh, we have another group of global leaders working on a plan to prevent further painful contractions in the business cycle. As we all know the bankers are the problem, so the first thing President Obama and friends need to institute is the supervision of bankers salaries and bonuses. Yes taking the highs out of the business cycle is the answer. That way loans and projects are not started and bonuses are not paid, and we all get to suffer in the low part of the business cycles. Unless, of course, your name is Al Gore, one of the many friends and patrons of President Obama. A 529M government loan was made to Fisker Automotive to build upscale environmentally friendly cars to a company partially owned by a company that Gore owns an interest. Naturally this company donated 2.2 million last year to Obama and friends, according to the Wall Street Journal, and the loan was approved by the President Obama's Secretary of Wind Mills and Green Cars, Steven Chu. This is how the new capitalism works, start up money from the public coffers to friends of the administration.
These are our leaders, and their issues. With indifference, incompetence, arrogance and corruption so openly on display, you really wonder which will be the last currency standing. The speculators choice recently had been anything but the dollar, and he is still a big time short. We have some evidence, though, that the bull move is stalling, perhaps ending.
This weeks market action, a new high, followed by a reversal, is a warning. Trades under 1.4550 would probably suggest we have a top. We will then have to watch the development of events for confirmation.