How to Invest With a Declining US Dollar

Yesterday, we got a glimpse.

Yes, dear reader, we were on our way to Sea Island. We looked across the bridge at another island — Jekyll Island. You know Jekyll Island, don’t you? It’s where the monster was created…

A group of the nation’s richest, biggest, and most powerful bankers got together there — in secret — in November, 1910. They figured it was time to put in place a system that would make it a little easier for them to make money. Instead of competing head to head, without any backstop to protect them when things got rough, they decided to set up a central bank.

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How to Invest With a Declining US Dollar

Yesterday, we got a glimpse.

Yes, dear reader, we were on our way to Sea Island. We looked across the bridge at another island — Jekyll Island. You know Jekyll Island, don’t you? It’s where the monster was created…

A group of the nation’s richest, biggest, and most powerful bankers got together there — in secret — in November, 1910. They figured it was time to put in place a system that would make it a little easier for them to make money. Instead of competing head to head, without any backstop to protect them when things got rough, they decided to set up a central bank.

[Read more...]

Preparing for a Lengthy and Unpredictable US Dollar Crisis

“On the threshold of a crisis,” we observed in our essay “Investing Ahead of the Curve” in the July 19, 2011 edition of The Daily Reckoning, “a fertile imagination can be an investor’s most valuable asset.”

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Preparing for a Lengthy and Unpredictable US Dollar Crisis

“On the threshold of a crisis,” we observed in our essay “Investing Ahead of the Curve” in the July 19, 2011 edition of The Daily Reckoning, “a fertile imagination can be an investor’s most valuable asset.”

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The Burgeoning Scam Market

“Monetary policy cannot fulfill each and every market expectation.”

So said the head of the Bundesbank, Jens Weidmann.

Why not, investors want to know.

Mr. Weidmann was talking to The Wall Street Journal. He was explaining why Germany was sticking to its guns. They don’t use that expression in Germany. But you know what he meant.

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Hitler’s Blackberry

Poor old Ben Bernanke has a deflation phobia. He sees it everywhere the way the kid in The Sixth Sense saw dead people. And Bernanke is equally terrified of falling stock prices (and their effect on consumer confidence).

Falling stock prices are what some people call deflation, or asset price deflation. Bernanke, the governor of the US Federal Reserve, believes the Fed made the Depression a Great Depression by raising interest rates too soon during the US recovery. He won’t make that mistake again! He will simply not allow stocks to fall.

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Dollar Declines, Then Reverses Course This Morning

Good day. It was a warm walk across the bridge this morning, hard to believe we have temperatures in the mid-80s so early in the year. We usually get some odd days during March, which bring the temperatures up, but this summerlike weather has stayed for most of the month. It has certainly faked the plants out, as they are leafing out well ahead of schedule. Today, we will start to see if the nice weather we have had across the country has helped the housing industry. At least one Fed head is saying the warm weather is partially responsible for some of the recent gains we have seen in the economic data.

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Dollar Drops After US Inflation Slows Slightly

Friday morning saw the dollar giving back more of the gains it had booked early last week and the greenback ended the week a bit weaker than it started. The CPI numbers were what sparked Friday’s selling, as the CPI came in a bit lower than forecasts. Consumer prices rose 0.4% in February, with just a 0.1% increase in the ‘core’ number (Ex. Food & Energy). The YOY gain was identical to the January reading at 2.9%, and the Core YOY figure was a bit lower at 2.2%. Apparently some of the currency traders felt these numbers may force the Fed to rethink their stimulus plans. Fed Chairman Ben Bernanke had indicated there would not be a need for another round of quantitative easing during the past few weeks, but the benign inflation data may indicate our economic recovery is in need of some additional fuel.

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Economic Recovery Without the Pain of De-Leveraging

If only Keynes had gone to Carnival!

Buenos Aires is hot and humid. We wilt. We slow down. We find it hard to breathe. It’s like Maryland in the summer time

But the humid weather doesn’t stop the partying.

We arrived at 2AM. A drum band was performing…amid shrieks of laughter…about a block away. It’s Carnival time in South America, a rush of late night revelry before the party stops for Lent. Yesterday was a holiday; so is today.

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