CONFUSED AGAIN III

My four year old granddaughter is prone to remark, "Awwwww man" when things don't go as expected. Her dad told me that's exactly what she said this morning watching the Chairman up in Boston wander around the issue of QE II. She's a pretty bright little thing and could probably add to the IQ of the FOMC (that's the Open market Committee) and sure would make it a lot more attractive place to be. Looks and brains; someday that's going to trnslaate into a lot of money which she will need to take care of grandpa as the D.C. geniuses are for sure going to wipe me out.

The Chairman's speech today, while convoluted and meaningless, none the less left little doubt that he is planning to move forward with the greatest monitization of debt in the history of the world at best and a bet to roll seven on the hop at worst. I keep asking myself "why" and can come up with no real answer. Even Hamlet, the nut for the ages wondered why the cup had been passed to him ("Oh cursed spite, that ever I were born..."). This guy seems pretty blah about the entire thing. I shall say no more about it. Let's see what transpires.

In the mean time, one thing that can be seen is the continued collapse of the dollar and the appreciation of just about every other currency in the world against the same (the Yuan of course is pegged to the buck but even that has risen). Developing Asia has seen rises of up to and surpassing 10% which if you know anything about the FX market is an enormous rise indeed. It's one thing not to agree from time to time with the politics and policies of The Leader, but I am beginning to get the distinct feeling that the guy hasn't a clue and worst yet, doesn't care very much. Our Asian friends are madder than hell at us and perhaps even more importantly, at each other more out of frustration if nothing else. Fortunately, the U.S. remains the only counterpoint to China but questions are beginning to be asked for how long can that situation continue, given the disarray in which the nation's foreign policy seems to present itself. Not good, not good at all.

Another thing rose up in D.C. I ran into one of my oldest friends, a Gringo who has lived in Latin America all his life, most recently in Mexico. He's not there any longer. It's a hell of a story. Next week. Going to be a great weekend in the fly-over zone with lot's of what doesn't confuse me....FOOTBALL! See ya.