USD NO MORE?
Our old friends are getting together to "support" us I see. Here is a brief look at a story in China Daily that shows that our buddies, China and Russia agreed to begin to settle bilateral trade in their own currencies, shunning the USD.
http://www.chinadaily.com.cn/china/2010-11/24/content_11599087.htm
This is the beginning of the end of the USD and we cannot pretend to believe that our leadership at the FED and at the US Treasury didn't anticipate these types of moves. Clearly there is beginning to be an overt repudiation of the dollar on the global stage. The proof of this is that the Federal Reserve became the largest holder of US Treasuries this week. We are clearly on our way to become the largest and worst banana republic ever.
TRADING UPDATE
While the past couple of weeks have gone as anticipated with a topping action in the market and a decline caused by another European swoon due to reality visiting stopping by for a few moments. I think we will begin to see buyers swoop in and move this market higher over the final few months of the year. Emerging markets have been hit as China continues to attempt to cool their inflation and we even saw Korea getting slammed after yesterday's geopolitical encounter with Kim Jong-Il (nut job). Commodities too have suffered. Despite this emergency in the East I think that the bad actor is simply trying to obtain some sort of aid and concessions and the west will willingly concede and give the nut case whatever he asks as long as he'll just play nice.
China must be loving this! I'm sure they will be coordinating something with Iran here to ensure that our foreign policy and diplomatic weaknesses will be revealed to all.
GOATMUG
Wednesday, November 24, 2010
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