Saturday, July 07, 2007

Another guy 'gets it'

So without a doubt the USDollar is the weakest link, and the USTreasury Bonds are the traded security behind the bloated black hole that best symbolizes the current Administration and its economic stewardship. Don't expect a Democrat Admin to be any better. They will merely shift the furniture around, redirect the flows a bit, disallow certain profitable procedures to perpetuate, change taxes here & there, be pressured into continuing the foreign wars, and make their own colossal errors. They will be dumbstruck by the bonfires in the bond world and the wreckage in the housing world. Republicans always seem to enable corporate profiteering with impunity. See a dozen examples in the last six years. Democrats always seem to attempt to help the little guy, but harm the system in critical ways. See higher tax rates resulting in lower tax revenue. See environmental obstacles, confusing regulations, higher federal taxes & withholdings, resulting in lost jobs. The nation is stymied, crippled, and heading to the cleaners. My label has been 'The Receivership Economy' from dependence upon bubbles, debt default, and Old Europe pulling the strings.

Without a doubt the USDollar is the weakest link, as numerous holes must be plugged to in the leaking dike. Gold and silver must be prevented from a zoom rise in price, since they serve as warning signals. Crude oil and natural gas must be prevented from a zoom rise in price, since they directly strain the USDollar. The long-term interest rates must be prevented from jumping higher. The stock market indexes must be prevented from falling sharply, since the public sees stocks as a visible signal of wealth. The USDollar must be prevented from a sudden freefall. The entire Wall Street and US Federal Reserve leadership is in the process of soiling their skivvies. The best investment might be in Depends Adult Diapers. These guys, leverage mechanics in financial engineering, destroyers of economies, snake oil salesmen of cancer ridden asset bonds, they are sweating bullets, pooping their pants, staring into space, stunned by failed auctions and uncertain valuation, wondering about leverage implications and debts called by creditors. These are no longer exaggerations written in tabloids, but rather front page news items.
Highly recommended.