The dollar has been too high for too long, and that's hurting people all over - US exporters, farmers, miners, loggers, oil and gas producers etc - they say ships are arriving full on the Pacific Coast and leaving empty. That sort of thing can only go on for so long before the same capital flight inflow that drove up the dollar flies away and drives it back down - it's not like people don't have choices already, and the Euro is about to provide another.
Interesting piece by Alan Braun on Bill Murphy's site (you have to register) lemetropolecafe.com - 'Whatever Happened To Cashflow?' - uses the example of Boeing who all of a sudden can't sell planes to Asia, where passenger revenues have dropped right off - no cashflow, no growth. Then he makes the point that gold miners always have cashflow, you can sell gold anywhere on the planet, and when growth looks doubtful in broad-market equities, gold presents an attractive alternative, if only to preserve capital (well, of course he would say that, it's Bill Murphy's site -g-).
I'm involved in the forest industry here in BC, and we have been beaten down bad in the last two years. It won't get any better until Asia, led by the Japanese, start building houses and printing thicker newspapers again, as we've become quite dependent on their market. So it's not just a few gold miner shareholders trying to see across the valley to the other side, producers all over would like to see a little air come out of the US dollar. And it will, and gold should lead the way, I think ... maybe ... Well, logically it should, but then, Whatever Happened To Logic?
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