Jack the Pipper

This isn’t an entirely new idea – we’ve made the connection in Currency Currents before and have since seen it presented elsewhere.

Describing Russia, Winston Churchill said, “Russia is a riddle wrapped inside a mystery inside an enigma.” I wonder how he would describe modern China; I think it would be fun to hear that quip.

The latest G-20 communiqué said nothing new. You know … where the leaders told us they’re not yet ready to rein in the stimulus they’ve provided to their respective economies.

My reaction to the Mr. Geithner’s comment about a strong dollar is the typical reaction I bet; there is good reason. That’s because for about seven or eight years we have been told by Treasury Secretaries present and past that a strong dollar is good for America.

For several years now most analysts have understood the way in which China reports their economic data. China says what its people, and often times the rest of the world, need to hear.

I spoke at a conference yesterday. It shall remain nameless in order to protect the guilty. What was most funny/incredible/nutty is a belief by said conference chief the US dollar, and in fact all paper currencies, will disappear within 10-years.

We all know that’s the bet gold bugs are throwing their chips on. And hey: why not? If the market is stopping at the early rungs on the logic ladder then that’s how we can expect prices will behave, for now.

We recently warned of the potential for changing correlations, no sooner was the ink dry than we noticed a a big one concerning gold and the US dollar index…

The FOMC did nothing yesterday, as expected. The markets were crazy early on … and then again following the meeting. (A whole lot of jockeying, as Jack likes to say.)

I recently downloaded Caesar’s Confessions on to my I-pod so I could listen while doing my strenuous exercise, which consists of a walk around the neighborhood once the US session is finished.