Cave Theory

"When the entire world is running into their caves, the country with the best cave wins."
- Langdana Cave Theory (paraphrased)

In the global flight to safety last fall, the dollar, which had been in decline for years, rallied strongly as the world rushed to what was perceived as the safest asset, relative to others, on the planet.

Mike Shedlock's article today in Minyanville discusses the current pessimism about the US dollar, due to all the debt being issued - and the fact that the pessimists are ignoring the fact that the entire world is engaged in the same deficit-spending activity.

Here's the link to the article:
http://www.minyanville.com/articles/CHINA-dollar-euro-FXI-UDN-CMC/index/a/22892

Dollar bears: beware !




- Peter T. Murphy, 2-Jun-2009