Friday, March 18, 2011

King Dollar!

Where to begin?  Gold stayed within range today, moving from middle to resistance to finish in between the two, nothing surprising there.  Silver is breaking out going into close, and that is a nice tell for what to expect next week.  Oil remained above $100, which is not surprising given the double speak that is the Libyan peace/war movement.  Japan remains "Operation Critical", putting the people of the State under dire stress.

Northern Japan will now be uninhabitable, says one Doctor Chris Busby, who is the foremost expert on nuclear catastrophes.  Greg Palast says one hundred thousand will die due to direct complications of radiation poisoning, not to mention the millions that will undoubtedly contact cancer during the next millennia.  Nuclear is done as a viable energy option.

I already had oil doubling by summer due to supply/demand strain and dollar devaluation.  Now I do not think $400 is out of the question by summer.  I know that is a little high, but what is a price target when denominated in dollars?  Precious metals will trade bullish on the back of the oil trade, and this whole move may be what sinks the dollar.

The dollar is now, again, the carry trade.  This is a problem, because the carry trade furnishes risk.  The dollar is also supposed to be the risk off trade.  So now it is the risk on risk off trade.  This is an oxymoron.  The trade will not last.

The Yen is dead, except for the dollar continues to play pretend.  The financiers can not have their cake and eat it too.  It is going to be, 'Save the Yen in the face of a dollar crisis' or 'The dollar dies, and a new currencie is born'.  This may be somewhat linear, but I am still digesting everything that has happened over the last month.  This is The Whiteness, after all.

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