YESTERDAY WHEN OIL HIT A RECORD 93...THE USUAL PUNDITS, EXPERTS, TRADERS, PROFESSORS OF ECONOMICS AND OTHER ASSORTED ASSHOLES WERE ASKED TO COMMENT...
THE USUAL FARE WAS: "WELL ITS THE SPECULATORS WORRIED ABOUT THE MIDDLE EAST." OR "DEMAND FROM CHINA IS CAUSING SUPPLY SHORTAGES."
NO ONE...NOT ONE...NOTED THE FACT THAT OIL AND THE DOLLAR ARE JOINED AT THE HIP...
THE BEST WAY TO "PLAY" THE STRUCTURALLY WEAK DOLLAR IS TO...NOT BUY GOLD...BUT BUY OIL WHICH IS PRICED IN DOLLARS GLOBALLY!
NO ONE SAW THIS...
BUT I'VE GOT A HUNCH THAT THIS NOTION OF SHORTING THE DOLLAR AND GOING LONG OIL IS A MASSIVE PLAY NOW AMONG THE HEDGE FUNDS!!
AND AMAZINGLY IT IS A WIN WIN SITUATION...!
CONSIDER...THE HIGHER OIL GOES...THE SLOWER THE US ECONOMY GETS...THE LOWER BERNANKE WILL GO ON RATES...WHICH WILL WEAKEN THE DOLLAR FURTHER...THUS CAUSING OIL TO RISE MORE...CAUSING THE US ECONOMY TO SLOW FURTHER...CAUSING BERNANKE TO LOWER RATES EVEN MORE....!
IT'S PURE GENIUS!!! THIS IS A NO LOSE PERPETUAL MOTION MACHINE!!
LIKE MOST PARADOXES IT REQUIRES THE PERSON IN CONTROL TO ACT COUNTERINTUITIVELY....
IT'S LIKE SKIING THE MOGULS IN COLORADO...YOU'RE FIRST REACTION IS TO GO SIDEWAYS TO SLOW DOWN...BUT THAT PUTS YOU IN AN EVER FASTER DEATH PLUNGE...THE WAY TO SLOW DOWN ON A MOGUL FIELD IS TO POINT THE SKIS DIRECTLY DOWN HILL AND LET THE BUMPS SLOW YOU DOWN... THIS IS TOTALLY COUNTER-INTUITIVE...AND SEEMS LIKE A DEATH WISH...BUT IT ISN'T...
SO TO WITH BERNANKE...HE HAS TO RISE RATES TO "SAVE" THE US ECONOMY! THE EVER WEAKER DOLLAR IS A DEATH TRAP...JUST LIKE TRAVERSING IN THE MOGULS...!
UNLESS BERNANKE LEARNS THIS LITTLE TRICK...HE COULD BE HEADING FOR A "YARD SALE" STYLE CRASH AND BURN...
AND THE US ECONOMY WILL BE DOING A MAJOR "FACE PLANT" VERY SOON!!
