Elmat, Thanks for the headsup. I am wondering whether I should take the BMW statement in contrary fashion or not.
We may agree on the facts:
(a) US high debt/consumption, and low savings economy may not fair well going forward;
(b) Japan may not always be able to intervene in the forex market to boost the USD;
(c) Inflation is happening, and accelerating;
(d) Assets are highly valued and not yielding enough;
(e) Money is cheap and cannot stay cheap forever; and
(f) Energy will cost more, acting to slam other assets.
In the above mess, between hard rocks and harder places, are a bunch of agitated rattle snakes such as wars and false accounting, at local and national levels, in the private space and the public sector, by individuals and governments.
We cannot move all of out limbs out of harms way at the same time.
Will Japan blink first and back off on currency manipulation, or will the US panic first and raise interest rate?
Will a rise n US interest rate boost the USD, or will the bulls get religion first, back off on the asset valuation, and tank the economy along with everything in it and connected to it, which is simply everything everywhere, including the USD?
Who will get destroyed first? and then who is next?
I do not know the unknowable. I just know what I do not know.
We must keep observing, thinking and moving, twisting a bit this way and shuffling a little that way, to get out of harms way(s) most of the time.
Fun? No.
Must do? Yes.
Chugs, Jay |
