roguedolphin/ALL - I agree with this idea from your post:
".....we are fast approaching the point at which the U.S. government will have to choose between crushing hocked-to-their-eyeballs American consumers by continuing to increase interest rates (a rock) in order to keep the dollar attractive to the foreigners who lend U.S. markets about $2 billion per day… or letting the dollar tank (a hard place), triggering all sorts of fiscal unpleasantness"
My questions are open to everyone on this board:
1.- What will the price of oil and base metals do if interest rates go up and/or U$D tanks?
2.- Will China and India continue to grow while we tank?
3.- Will the Canadian Dollar, backed by natural resources, rule North America?
I am overweight oil, ngas, zinc, copper, gold, and diamond companies, mostly in Canada and Norway, and interested in what everyone else here thinks about these commodities and the Canadian and Norwegian currencies.
Also, this statement was made "precious metals, the ultimate tangible." I have a problem with that statement because I am like Len and feel that gold is more of a dooms day tangible. It seems to me that if the rest of the world keeps turning while the USA tanks, the ultimate tangible will be oil, copper, zinc, and other consumable tangibles.
I suppose the biggest question of all is WHEN will we see higher rates and a weaker $. I did really well in the market last year and stayed 100% invested. I made the mistake of watching NBC Nightly News Friday and it made me want to cash out and hide under my bed! Palastinian election won by Hamas, Iran showing off missiles, the usual Iraq footage, $260's something $/bbl oil prediction from some guy, YIKES!
Thanks,
Kipp
