IF YOU THINK ONLY IN MINUTES AND HOURS...THEN HIGH INFLATION IS "GOOD FOR" THE DOLLAR...AS THE DOLLAR TOUTS SUGGEST.
WHY? WELL THE B-MAN WILL NOT BE ABLE TO LOWER RATES ANY FURTHER WITH INFLATION HIGH...
BUT WHATS THAT GOT TO DO WITH IT...? BERNANKE'S PREMISE IS THAT THE CREDIT CRUNCH IS A THREAT TO THE BANKING SYSTEM...AND HE HAS BEEN IGNORING THE DOLLAR AND INFLATION ALL ALONG...
FURTHER, HIGH INFLATION MEANS THAT THE DOLLAR IS WEAKER...NOT STRONGER...AS RECENT DOLLAR TOUTS HAVE IMPLIED...
JUST THE WAR DEFICITS ALONE ARE ENOUGH TO JUSTIFY A LONG TERM SHORT DOLLAR POSITION...
BUT AN ALTERNATIVE THAT TAKES THE GUESS WORK OUT OF IT IS GOLD (GLD) OR GOLD STOCKS WHICH HAVE YET TO PLAY CATCH UP TO THE METAL...
IF YOU TRY TO MAKE LONG TERM DECISIONS BASED ON WHERE THE "LEMMINGS" ARE RUNNING THIS HOUR...OR THIS DAY....YOU ARE NO BETTER THAN THE REST OF THEM...
DAZED AND CONFUSED....AND IGNORING THE BIG PICTURE FOR THE BIG LIE!
