Is capitalism dead? Will the U.S. Dollar sink into a bottomless cesspool?
Much of the marketplace has been wielding the homo hammer on the greenback lately, and for reasons quite obvious:
….the Obama administration’s policies and decisions on how to handle the financial meltdown / looming depression.
In short, the marketplace and those who tenaciously cling to capitalism see this current president’s financial moves as a direct attack to its family jewels.
One example: GM
This most egregious move to force a once great American institution to fire its execs and institute a government / union hostile takeover, while leaving the creditors and bondholders with dust, is nothing short of socialism cloaked in gay pink robes.
Does anybody in their right mind believe that the government and the UAW are fit to own 89% of GM? All our current government can do is run up astronomical deficits and blame the previous administration for keeping us safe from terrorists. Very responsible and wise behavior, no?
Even Bill Gross, PIMCO bond guru, has flat out said that it appears that it is but a matter of time before the U.S. loses its AAA credit rating….and, so goes the dollar.
When pools of capital see Obama raising taxes, closing loopholes, vilifying corporate CEOs and taking over domestic businesses, what do you expect? Do you think capital will gladly remain poised for a few rounds in the Octagon with the Obaminator and the far-left machines? If your answer is yes, I have some beachfront property in Wyoming I can sell you.
In short, commodities are going up, not necessarily because of huge demand, but because of where the dollar is headed.
So where is capital fleeing to?…..commodities and English-speaking commodity producing countries.
If you’re wise, you’re already in or considering such things as GLD, USO, DBA, DBC, FXA, FXC, EWA, EWC. Even EWZ is worth considering due to its younger, energetic workforce and its orientation towards open foreign trade.
Many of you are short term traders. You play hot stories, hot stocks, Chinese solar burritos and penny-wise, pound foolish stocks. You know the risks of the game.
However, for the longer term big picture, I see us living amongst zombie banks in a zombie economy, and I will use whatever firepower is necessary to keep “The Living Dead” away from me.
Turn that thought into practice.
(Disclosure: no left-wing radical socialists or jump-shooting politicians were physically harmed in any way by this post, only possibly offended.)
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