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GeoffreyTransom · 15-12-2003, 01:31

I agree too, Mizzer. The capture of a second-rate CIA-implanted dictator is not going to change the US' massive external imbalances, nor will it slow the rate at which Greenspan is printing USD. Nor will it slow the runaway government spending (one half of the reason for the US having an unprecedented string of budget deficits - the other half being the "target the GOP donors" tax cuts). Federal spending now approaches 30% of GDP (and the US claims to be even remotely interested in free markets!!). The USD is weak because of economic mismanagement of the public sector and irresponsible monetary policy, not because of Saddam Hussein.

This downward blip - which will be the countersign of an upward blip in equities and a downtick in bonds - will just enable smart money to re-short both US equities and the USD at higher levels. And of course Gold has been smacked a little overnight - "real" things will suffer for the next session or two, while "fiat" things will go for a little bit of a romp... however with the VIX at its lowest level IN HISTORY, this is one of the best times to think about shorting US equities...

15-12-2003, 01:31	#14
GeoffreyTransom level 1 Join Date: Dec 2003 Posts: 7 Downloads: 0 Uploads: 0 Rep Power: 0	I agree too, Mizzer. The capture of a second-rate CIA-implanted dictator is not going to change the US' massive external imbalances, nor will it slow the rate at which Greenspan is printing USD. Nor will it slow the runaway government spending (one half of the reason for the US having an unprecedented string of budget deficits - the other half being the "target the GOP donors" tax cuts). Federal spending now approaches 30% of GDP (and the US claims to be even remotely interested in free markets!!). The USD is weak because of economic mismanagement of the public sector and irresponsible monetary policy, not because of Saddam Hussein. This downward blip - which will be the countersign of an upward blip in equities and a downtick in bonds - will just enable smart money to re-short both US equities and the USD at higher levels. And of course Gold has been smacked a little overnight - "real" things will suffer for the next session or two, while "fiat" things will go for a little bit of a romp... however with the VIX at its lowest level IN HISTORY, this is one of the best times to think about shorting US equities...