The sudden collapse of the markets
today was not unexpected....markets tend to appear stable long after the foundations of their stablity have been removed..... Then, suddenly, some "small event" appears to cause a general collapse. An obscure bank fails out in the hinterland...... A slip of the tongue by a central banker....as with Korea today.
The rise of oil above $50 is now accepted as inevitable....no one is seriously talking about $30 oil anymore.
And there are a raft of geopolitical and macro economic issues that make the coming dollar/market collapse all but certain.
Take the "twin deficits?" ....we don't even talk about them anymore, because there are NO GOOD ANSWERS.
The tax cuts and that buffoon in the White House are yet another coffin nail for the markets...... Dubya's Euroland trip could be called: He came, He saw, They sold!
Now Korea is backtracking on the selling of dollars, and everyone is trying to put some reverse spin on the events of today..... But denying the inevitable is a fools game...
ITS NOT ABOUT SELLING OLD DOLLARS....IT'S ABOUT NOT HOLDING THE NEW DOLLARS!
All change in economics is "at the margins." And the margins got a little bigger today.
THE US DOLLAR IS ONE SICK PUPPY..... AND IT WOULD NOT SURPRISE ME IF OIL WAS AT $60 + BEFORE THIS YEAR IS OUT......
