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October 22, 2004

Would You Rather?
by John Mackenzie

One Point Six Trillion Dollars, that's a whole lotta JING, but all in a day's trading for Uncle Buck. The Price of Loyalty to the Globe's Reserve Currency is increasing hourly. The trials and tribulations of King Dollar (aka Federal Reserve Note Confetti) are self evident:

The delicate fabric, finely woven 33 years ago by the Nixon Administration is beginning to fray. Yesterday's announcement by "Strong Dollar" prankster, Secretary of Treasury - John Snow, appears to have been received for what it was... an act of cowardice on the part of an Administration who's Policy "Faith" has already been seriously undermined by the rest of the Globe's ACTION Strategies.

If you doubt who controls the future direction in this war of words between the Administration and the Federal Reserve, follow the above chart closely. In my opinion the Central Bankers have let loose, sans Japan, of course, but they'll fall on the sword awhile longer as they are in as bad a shape as the United States.

Integrity, Character and Priorities should shape a Nations Policies, but without STRATEGY grounded in the confines of knowledge and intelligence, we are adrift and at the mercy of our counterparties in the Global Financial Community.

We are quickly arriving at the "Double Bind" inflection point, whereby those holding our Treasury Bills, Notes and Bonds must decide how badly they are willing to be beaten for having swallowed Alan Greenspan and Company's Faux Recovery. In simple terms it amount to a "Table Tilt" at the World Championship of Liar's Poker. He who gets to the Cashiers window first... looses the least. The winner will not likely emerge for sometime, but I would venture a guess that the one with the most at stake ends up the BIG LOSER.

That would be US.

Whether we see the Fed PANIC and institute further continued madness with Credit & Aggregate Expansion in order to monetize this unserviceable avalanche of Debt is anyone's guess. They may, then again they might not get so lucky. I prefer my coffee black and its price to only have a few zero's behind it. If I have to pay in Peso's it's going to likely PRICE me out of the market, regardless of real, unhindered DEMAND.

As for this observer, the FRIGHT to Quality appears to be on as I type: Gold, Silver, Brass and Blue with a healthy dose of Black n Blue thrown in for those hanging onto Promise Tickets.

As the Mogambo would say "Ugh", Pure Ugly ahead.

John Mackenzie

John Mackenzie manages private capital - Email: m2jrmfl@bellsouth.net

Copyright © 2004-2005 John Mackenzie

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