I like Lord Mockton’s stuff on climategate.
And his reading of the debt biz and china would be on target if it were not that the USA has been adding nearly a million barrel’s a day per year in oil production for the last three years and will do the same this year. Further all indications are that another million barrels of oil production will be added annually in each of the coming 5-7 years.
This totally reorients world wide dollar flows—just as the Chinese and others are pulling away from the dollar to transact their trades. In other words —its a wash.
Further, growth in the US economy caused by increased oil production will likely shave 200 billion or so off the US deficits for the each of next couple years. In 2013, this will mean that US deficits will still be just under 1 trillion. But in 2014, the deficit will be likely be just under 800 billion. In 2016 the deficit will be just under 400 billion.
People get this. For this reason the dollar bottomed in 2011. It has been basing for the last two years.
The next likely direction for the dollar is up.
Mockton would be better served if he spent his time advocating that the Brits mine their natural gas reserves —so as to revitalize their economy.
Ok, I buy that. But what about the growing unfounded liabilities and the cost of Obamacare.
I think the Chinese are in as much trouble as us—we are Thelma and Louise...going over the cliff together.
What form of growth, here in the U.S., will cause the dollar to go up?
Forgive my ignorance..... where is the oil coming from, I thought Obama closed down domestic oil production?