Profound Weakness in The Dollar.
George Washington is not happy.
stupid and greedy war in Iraq is bleeding the US and Iraq terribly,
in many, many ways. The direct financial cost is
approaching 1/2 trillion dollars. See the
running total on www.costofwar.com They break the numbers down in many meaningful
ways. The war has also had a devastating effect on the US dollar.
The US deficits
are so massive and the Bush Administration, so unwilling to raise taxes
to pay for the
war, the dollar can only drop and drop. At some point, it may go
into a "free-fall".
Of course, the Fed will need to raise interest rates to get foreigners
to continue to finance
the debt. The charts show it all.
First, see how Bush's
decision to make war in Iraq coincides in 2002 with the top
in what had been a gradual rise in the Dollar's value. This chart
only goes through
Next see what has happened to the US Dollar as the US military has been
ensnared in the middle of a violent civil war among the vaious Iraqi
Down, Down, Down. And with it, the savings of millions of
Americans on fixed
incomes. This month, and not shown on the month chart, the US
is is breaking down to new lows..
Below are the Tiger charts of the Euro and the British Pound.
Especially the EURO chart
has shown massive insider Buying at many recent minor bottoms.
The EURO looked
extraordinarily bullish to us when it was below $1.19 a year and a half
ago. It still is under
big money Accumulation. Here is the Tiger chart of the the
perpetual contract of the Euro
for 2006. Note the steadily positive (blue) Accumulation
Here is the EURO now. It is rising at a 7.9%
rate against the US Dollar.. Its new highs
are supported by heavily (Blue) readings from the Tiger Accumulaton
The perpetual contract of the British Pound also
shows great strength.
Even had we not been watching the currency market, which
isn't likely as the
British Cancellor of The Exchquer was the subject of my
dissertation at Columbia,
we would still have made money simply by buying the stocks
showing the most
positive readings from the Tiger Accumulation Index.
Look at the charts of
ABB or ABB below.
VOLV - Note Massive Bulges of Insider Accumulation.
A Collapsing Dollar Bring about A US Bear Market?
The Feds will be hard-pressed not to raise interest rates
to make their job of
finding overseas financing for the massive US debt.
But that will hurt the US
Housing and Finace Sectors significantly. So, they
may delay reaising rates.
As the dollar weakens further, probably accelerating its
decline as more and
more see what is happening, both foreigners and Americans
alike are apt to
choose not to own American stocks.
More will surely be written here
about the extreme financial vulnerability
the Bush Administration's stupid war has caused.
The Declining Dollar Is No Joke .
#1 - Learn it. Memorize it. Tell it. You will
always get a laugh.
THE MONK JOKE
A man was driving in the middle of nowhere down a secluded country road far from any
cities. He got a flat tire, and got out to walk for help.
After walking for some time, he came to a small stone monastery. He knocked on the door
and roused the monks. "I've got a flat tire. Can I use your phone?" He asked.
The monks said they were sorry, but the did not have a phone.
"If you stay tonight, you can get a ride on our wagon into town tomorrow," they
said. So the man stayed the night, and they put him in a small room in the monastery.
In the middle of the night, the man was awakened suddenly by a noise. Not just any noise,
but the loudest, most wonderful, most terrifying, most hair-raising noise ever. He sat
there, his heart beating for a few minutes, and he heard it again!
Getting out of bed, he went running in the direction of the noise. It came again, making
the hair on the back of his neck rise and his skin crawl.
Finally, he came to a large door where the head monk was standing. The door was at least
15 feet tall, and made of solid-looking wood and metal. It had chains and bars and locks
and a deadbolt on it, and was the most formidable door the man had ever seen.
"What was that sound?" He asked. "What made it? Is it behind that
The head monk shook his head. "I'm sorry," he said. "I can't tell you;
you're not a monk." As the man turned away, he heard the noise again.
"You have to tell me what it is," he begged.
"I'm sorry, you're not a monk," said the monk.
The man tried to sleep, but couldn't get the noise out of his head. In the morning, as he
was getting ready to leave, he heard the sound again. It made his ears ring and his mind
"Please tell me what made that sound," he said. But the monks wouldn't.
"I'm sorry, you're not a monk" was all they said.
The man left, and eventually got his car fixed and went back to his life. But he couldn't
get the sound out of his mind.
After a few months, he got in his car and drove and drove until he found the monastery
again. He got out of his car and found the head monk.
"I can't forget that sound from that night I was here. Please, please please tell me
what made that sound."
The head monk just shook his head. "I can't tell you; you're not a monk," he
"Then tell me how I can become a monk," the man said.
The head monk said "It's very difficult. Are you sure you want to do this?"
The man said "I've got to. I have to know what made that sound."
The head monk said, "To join us, you have to perform several tasks. Your first task
is to count all of the stars visible in the sky."
The man thought about how hard that would be, but he had to know what made that sound. He
sat up every night for a year, counting the stars over and over until he was sure how many
stars were visible in the sky. He went to the head monk and told him, and the monk nodded.
"Very good. Your next task is to count all of the grains of sand on the beaches
around the world."
The man knew this would be even harder, but he could not get the noise out of his head. He
had to know what, what kind of animal, could make that terrible horrible mind-bending
sound. So he left on his journeys. He crawled the length and breadth of every beach in the
world, counting the grains of sand, and he returned to the monastery years later.
The head monk heard his answer and nodded. "Excellent. You are almost done. Your
final task is to climb to the peak of the highest mountain in the world, and see yourself
in relation to the rest of creation."
And the man knew this would be hard, but he outfitted himself, and he went to the highest
mountain in the world, and he climbed to the top, and returned months later, older and
wiser and more tired than years before when he had first heard the noise, the noise that
would not leave his mind and that echoed in his every waking thought.
He returned, and the head monk saw that he was wiser, and said "At last, you are a
monk. Come with me." And they walked through the monastery, its twisting and turning
halls, and as they went the man heard the noise again, over and over, and he was no longer
sure if it was the noise or merely his memory of it.
And finally, finally, he stood in front of the door and the head monk opened it up, and
the man saw what had made the noise.
L O N G S I L E N C E.
That's where you stop telling the joke. And your listeners, if you've told it right, will
go crazy, and say "What was it?" And you look at them, and you say:
"I'm sorry, I can't tell you. You're not a monk."