Archive - Mar 30, 2011 - Blog entry

Another federal election campaign in Canada (sigh!) and this time pension politics are front and center...

I was recently on a trip to South America looking at real estate. While there I was told repeatedly by developers that they didn’t want to sign a contract in US Dollars. Instead they wanted to do it in the local currency. This has NEVER happened before during my trips abroad (even as recently as 2009). When I pushed for having contracts based in Dollars, the price went up EVERY week. The reason? The US Dollar is falling in relation to the local currency on a daily basis.

The news is only going to get worse for WTI longs, as the next couple of weeks will bring the total storage at Cushing close to the max capacity of 44 million barrels due to the fact that more traders took delivery on WTI on the last CL rollover.

John Maynard Keynes once said of inflation:

"There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."

It's going to be a long haul for housing and there is nothing on the horizon, such as an improving economy, lower unemployment, and climbing wages to stem the flow.

Our Nobel peace prize winning former constitutional law professor in Chief is arguably even MORE BRUTAL than Bush ...

Mr. Neutron, the most dangerous and terrifying man in the world...

Neil Barofsky is resigning in style today with a scathing editorial in the NYTimes (when WILL Murdoch shut those radicals down?) in which he calls the program a FAILURE and "little more than a giveaway to Wall Street executives."

Let's hope that the SECOND complex is under control.

Not a birthday, a payday.

One can be rest assured those Irish haircuts are coming. Will the other indebted EU nations just sit back as Ireland clips its debt without following suit? Doubtful! Remember, I have been warning of this event for over a year, and the daisy chain effect is still being ignored.

Want a cheap undated put on oil? A Darwinian thinning out has taken place over the last 30 years, while management has learned to make this worst nightmare of an industry efficient. The top four airlines now control 75% of the US market. The industry has fewer seats than in 1982; while inflation adjusted fares are down 40%. When was the last time you saw an empty seat on a plane? (AA), (LUV).

It is a pity that Dr Miyamoto is not alive to offer his unique insights today. Luckily, we have the benefit of his writings.

USDJPY has been in the strong short zone with over 70% of traders long for many, many months, close to a year now. In that time we have seen sustained and continued declines, today is the first time we have seen long positions dip below 70% in almost 12 months.