Two things re: USD:
1. They are everywhere.
2. They are like your crazy, obnoxious disruptive uncle in the attic. Everyone hates taking care of him, but putting him on the street will cause too much grief so he is tolerated. His privileges are slowly taken away because controlling him slowly and deliberately is the only way. In time, he might get better. But it might take lots of time.
I don't fear capital flight from the US [teotwawki would be upon us if that were to happen in the short term] but I do fear further dollar deterioration, particularly against Asian currencies. So, I am essentially out of dollar and in the Yen which has finally started its move. Yen and Swiss Franc are the ultimate crash protection, IMO, and very worthwhile pals in times of uncertainty. The Franc will even give you exposure to gold.
In the meantime, the writedowns are coming at us like hurricanes from Africa in August. SKF should do very, very well unless the Fed Gov't starts up some version of Resolution Trust, which is quite possible.
Don't know much about HK except that, inevitably and with regularity and at the most inopportune moments, when we consider ourselves invincible and Masters of the Universe, bubbles burst.
But of course we're only small voices in the wilderness, touching an elephants tail and describing, with certainty, as a rope. Who knows, elmat might be right and we should be putting all our cash in Nigeria. vbg. |
