Hey Bruce Stockconsultant gave HC 100% today also, interesting considering the bashing these two have taken due to media induced FUD pieces.
Oh yea Dave, I haven't a clue as to the significance of the heights of the US dollar but a couple of articles shed some light:
aei.org
The news behind possible dollar weakness is the key to interpreting its significance. If the dollar weakens because growth picks up in Japan or Europe, then that would be a positive sign that leadership for recovery of global demand growth has shifted outside of the United States, as might normally be the case from time to time. Alternatively, if the dollar drops largely because of a collapse in U.S. demand and sharply weaker U.S. stocks, a self-reinforcing global deflation could be the result. Foreign central banks would have to ease aggressively to try to contain the deflation. Right now, the Bank of Japan is unable or unwilling to ease and the European Central Bank is unwilling to ease. Let us hope that picture changes rapidly if the U.S. consumer, exhausted by losses in the stock market, rising debt, and a sharp rise in tax burdens, decides to stop spending.
Ironically from my Congressman:
house.gov
Regardless of whether the experts demand a weak dollar or a strong dollar, each inevitably demands lower interest rates, hoping to spur the economy and save the stock market from crashing. But one must remember that the only way the Federal Reserve can lower interest rates is to inflate the currency by increasing the money supply and by further debasing the currency. In the long term, the dollar is always weakened, even if the economy is occasionally stimulated on a short-run basis.
(He believes in the Gold Standard)
Some of my goldbug friends think March is a potential low in the price of the yellow-seems like a proverbial fork in the road. This economic recovery becomes real and the wall of worry continues or we slip-slide into an extended period of painful doldrums............. |
