Wednesday, December 01, 2004
More Talk About the USD Today
The administration and the federal reserve had better act soon to shore up the U.S. dollar. The dollar is deteriorating almost daily against the euro and the yen. A panic attack on greenbacks is imminent if the Fed doesn't act soon to mop up excess liquidity. The last thing we need now is a currency crisis. John Kennedy had it right 40 years ago when he observed that strong states have sound currencies.The problem is the word "strong". We are strong militarily, but we are like a drunk before he takes the cure; financially bankrupt. I leave it to you to decide if we are morally and spiritually bankrupt. Some would argue that we are, others see signs of a rebirth, if all the talk about moral values is an indication.
Today the USD closed at a new low versus the Euro and it is trading lower in after hours trading. Gold closed at a new 16 year high and is higher, $455.80, in after hours trading.
There was good news of a sort. Jim Sinclair at Mineset.com says that
The China Aviation Oil Company has gone belly up after shorting crude.Seems that they tried to fight the market and the market won. That sounds like a song!