Global Currency

Here it is...And all the players are lining up.

Those of you on fixed incomes with bonds, annuities etc had better pay attention. The central planners have already figured the only way to pay for this experiment is to devalue all of this debt (which is bonds etc)

It did not help that the auction today was soft. Seems the world is getting tired of our debt.

Here comes the devalue. Better take care.

Where's the bear?

Many folks are wondering just where the ravaging bear is right now. Remember some of the largest gains are in secular bear markets. Taking a look at the chart we can see this secular bear started in 2000. The average secular bear has been 18 years. So you can see this ne is still in the infancy stage. So we wait patiently for the inevitable rally back to a regular descending line to take another position. Now this could be fro a huge rally, of just going nowhere for months.
Hope this helps.

World Currency

We spoke on this subject a few weeks back. Now Russia and China are climbing on board.

What this does is basically do away with debt. So those holding dollar debts are converted into the new world currency. Whatever value they place on it.

This will definitely dissolve debts, but the debtors are going to take it in the shorts. This will make gold the true world currency. Once the dollar is no more the reserve currency, it can drop out of site.

We spoke of this being the only way to dispose of the trillions without bankruptcy. But then bankruptcy is really what you are doing. Kind of like when a company files for bankruptcy, the old shares are done away with wiping out shareholders. Now the bond holders receive the new shares, selling them on the markets to new investors.

This is what will happen should we adopt a world currency (which looks likely)

Fixed income investments are going to get clobbered.

Last weeks actions

Now the talking heads will be all over this. Is the bottom in? Are we there yet? Best buying opportunity in a generation etc.

One thing to remember in bear markets. You will see some of the most spectacular rallies.

My SPY puts (88,89,85,84,82) etc are so far in the money I cannot believe it. Even after the 9% rally last week. The perfect thing to happen would be for another week like last week. That would give me the perfect storm. But as anyone that has traded for more than one bear cycle, you rarely get what you want or expect. You need to trade what is given to you. Right now the bear is growling big time.

Stay tuned (or watch for the newsletter) some ideas on this weeks trading opportunities.