Jack the Pipper

Ok, we all know the story (even though it’s been thrown on the backburner with the ongoing implosion of Europe): the US dollar is doomed because of the growing deficits and debt in the United States.

We put together the chart below for a presentation we made back in January this year; it is a visual representation of the four primary underlying themes we think will drive the long-term dollar bull market.

On Wednesday, I had an opportunity to present a webinar to discuss my current views about the euro. One of the key PowerPoint pages summarized reasons for my continued concern about the euro

You might remember I kicked off the show on Tuesday by touching on the latest Reserve Bank of Australia monetary policy decision: no change to interest rates.

Now even Iran is jumping on this dollar bull market… The Iranian central bank has announced that it will sell 45 billion euros from its foreign exchange reserves to buy dollars and gold, China’s official Xinhua news agency reported on Wednesday, citing unspecified Iranian media reports, Reuters reported.

What did the RBA do? Nothing. And their inaction confirmed what traders have been anticipating: a very unstable foundation for the global economy.

If you were worried about the euro, you can stop now. We saw a story on Bloomberg that quoted Paris-based money manager Emeric Challier as saying, “The crisis is over.”

“The big lesson of the US financial crisis is that you have to act quickly and with force.” And why not? His “markets want to see action” approach parallels the same skewed thought process that …

Where does one even begin with that type inanity, from a person who is far from inane? Yo Jim! Germany, that little country holding it all together over there; well, they send about 50% of their exports to the eurozone each year.

The US Treasury Secretary has been in China, tip-toeing around yuan exchange rate reform, Chinese industrial protectionism-type behavior, etc. It was obvious Geithner was not there to point fingers – he’s probably been given a strict script to which he must stick … after seemingly losing his cool on Capitol Hill months ago.