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Call me cynical, but with the Irish Whiskey Soakers getting bailed out via extensive fiscal austerity hand slapping by their European Union betters (bettors?), do you really think this dollar surge is going to last much longer?
I believe the funny money provision is point three or four of “Despotism Made Easy,” which reads like the blueprint for the last four plus years of Hope and Changey recklessness. I highly recommend the piece for your review — it shouldn’t take you more than ten minutes to read all 14 pages of it. It explains how keeping people in financial penury by cheapening the paper they use to exchange goods and services (erroneously referred to as “money”) is only one of multiple means toward a targeted despotic end for our once proud Republic.
That need to continue feeding the hungry funny money machine that will keep this economy “going” — at least superficially — will always serve as a millstone around the dollar, no matter it’s near-term reaction to Korean Guttersniping or PIIG-like European snorting.
Since I last left you for a scrumptious giblet delight repast, the dollar has surged in erratic Turkey Gods Trading all the way to $80.65. While I was not surprised to see the dollar touch $80.00 on the DXY, I was amazed at how quickly it blew by that number and then almost all the way to $81.00 in subsequent very light trading.
I just don’t think the dollar has a lot of more runway ahead of it, and it’s not just because of this stealth move in light trading. It’s also because we’ve retraced the last drop from the highs all the way to the very strong 38.2% Fibonacci Line. Check it here on the weekly:
That all said, we should gird our loins for a continued move to the $81-$82 region. It’s not such a stretch from here, and it would be enough to make the recent PM noobs squeal and drop. Heck, I might even dump some of my December IAG call positions if I see a move to $81.
Like my pappy always said — be prepared for the worst, so you can take advantage of the best when the time comes.
Best to you all.
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