The New Dollar
Sent to me this morning from a friend on Wall Street is this design for the new US dollar bill:
The five dollar bill is of Lincoln's backside!
Ive been a dollar bear for years, after understanding the fundamental problems with our economy. Also, in JAN i publicly discussed WHY the wall street model was OVER, and that the game was over for the big boys. Reality for some has still not set in, and probably wont, until they themselves experience the slowdown/pain firsthand, whether it be a loss of job, a pay cut, negative wealth effect from stock portolfio/retirement, neg wealth effect of house, contracting credit availability, whatever.
Our dollars will be debased and this wall st bailout that seems to be coming, sets up a very problematic scenario for our treasury SHOULD foreigners decide to stop funding our debt OR credit worthiness of USA as a business, is called in to question or downgraded.
I worry that a residual side effect of all this will be rising longer term rates. Look today, market down about 2%, yet 10YR bond yield HIGHER! Case in point. usually, yields will fall on a sig selloff in stocks. This disconnect I think is more reality than some would like to believe. As I wrote months ago on my thought on the dollar, with stimulus coming, we needed that bear market dollar rally so action can bet taken. Well, damn, mega action is now being taken, and dollar is retreating and wondeful gold is lustering. Its a new world!
Hope all is well and good to see business is still strong for your Doug
Thanks as always for the insight Noah. Now get back to enjoying your vacation!