Dear Friends,

The management of perceptions concerning the Chinese dollar position is that it is only talk pointing to what is interpreted as a flip flop between unfavourable statements to the dollar last week from the highest of sources to statements today that this is not quite true. The people who write this have no sense of how negotiations work in Asia. The esteemed financial leadership in the West would be well advised to read the book, “When Yes Means No."

The second point is the strange belief that China has no means of exiting the US dollar and dollar denominated instruments because they have only one alternative and that is selling directly into the world market for dollars and dollar denominated instruments. This is so misinformed that it is total nonsense. Every time a major Chinese entity makes a foreign acquisition or joins in a foreign project the funding finds its way back to the official dollar position and reduces it for an asset, be it in or above the ground.

The dollar life expediency is 129 days.
I mean that. I believe that.

MOPE will try to do everything to make me wrong, but it will not succeed.

FDR programs depreciated the US dollar according to the USDX from its high around 1.20 to a low that would have equalled .4200. FDR never embarked on Quantitative Easing to the degree we are experiencing internationally today. There are consequences.

According to CNBC we totally erase all past market history as irrelevant, describing today as "The New Reality."

It is wonderland out there. The world remains off it meds listening closely to a bunch of wing nuts who are manufacturing MOPE. We are not "Melting Up in Government Economic Statistics" according to the dancing fools.

What is the difference between Madoff’s false profits and these false prophets?

Respectfully yours,
Jim