A BIG JUMPSUIT TO FILL - NORTH KOREA

As you know, I am a firm believer that our current economic environment is driven by forces that are global.   Due to the significance of world political events we must be aware of the issues facing each sphere of the world.   I am struck by how stunningly fast geopolitical changes are happening everywhere.   As a result of the pace of change, it is important to use excellent resources to understand the climate in these places.

With an armed military force of more than 1 million and of course at least 6 nuclear weapons, all of us should be watching North Korea.  Please examine this short video about the death of North Korea's leader and the transition to power of his son, Kim Jong Uhn by Stratfor.

  Kim Jong Il Update

 

 Like the global elite everywhere, remaining in power is the only thing that matters. I don't think it will be long before Kim Jong Uhn needs to demonstrate his power and authority on a global stage.

GOATMUG

Goatmug is an investor that cares about you and your family. Goatmug's Blog - Financial Perspectives From The Mountain Top is a collection of thoughts on our economy and how it impacts the lives of investors and average people. While several specific investments are named in many of his posts, these articles are simply invitations for you to do your own research and reference to these securities does not constitute financial advice. Your situation is complex and unique and you should seek professional assistance with your trading and investing. Please visit Goatmug and share your comments at http://www.goatmug.blogspot.com/

CURRENCY BATTLES HEAT UP -

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