Disaster Mentality, Asian Treasury Purchases
Chris Laird
Looking out on the Pacific Ocean, I got a chill. I grew up in Los Angeles,
sailing the channel islands. It was usually blissful. At times definitely
terrifying. But my memories are very pleasant indeed.....
This last weekend, I gazed out on by beloved Pacific, and got a chill.... I
live in Los Angeles, and very much of this city is not much higher than sea
level along the coasts. I thought, what could happen HERE if a tsunami came
in? Not 130,000 dead but maybe a million dead?
This place is so dense, that the coastlines would just be washed away with a
whole lot of people.......
I saw some footage of the December tsunami, it was eerie. Have u ever seen a wave on the beach after it broke, the onrush of the water forms a forward
rolling mass of water, net even a wave then, just an onrushing mass of water
as it washes up the beach. THAT is what I recognized in the tsunami footage. But it wasn't just a few feet tall, but like 30 feet tall. A 30 foot MASS of onrushing water creaming everything in its path.
Now then. We all know that people say we're gloom and doomers. That is only
because we can see what CAN happen. Most disasters come unannounced. So are we being stupid or PARANOID if we think the risk is quite real? No I don't think so... we're realists, and the others believe everything will go on as it has for the last 50 years.... the post WW2 prosperity of the west..... a
literal Disneyland.
Well, but only a couple of years before the end of WW2, there were millions
dying. Then before that, only ten years before the onset of WW2, the great
depression started and enveloped the world, and so on. It was literally
hell.
I don't apologize for looking at the present financial situation with a very
dim view and writing about it. Most people just don't follow economics that
closely, and hold simple views that are always based on the recent past. But
WE know that times change, and if you happen to live in a time when, as
Winston Churchill said 'great sacrifice' is needed.....well, I hope you are
making some kind of plans... that's all I can say.
I want to comment on the news that is out abut the Chinese and Japanese not buying treasuries, or have "stopped buying".... ok so they have, so what?
I know this is a little a different view isn't it? Its all about the timing,
we know there may definitely be a coming dollar crisis.....
Readers
I have seen stories about Japan and China not buying US Treasuries. Some
commentators are saying this is IT.
No it is not.
Yes, the Asians said they are going to put less weight on the dollar. Yes
yes yes and so on.
They are not pulling the plug. They are pulling back there is a difference.
They have said they are going to underweight the dollar. OK so what. There
are other buyers. Some people are saying it is the Fed itself operating from
the Caribbean, and from Britain. The time has not come yet.
Don't let your correct disaster mentality deceive you into making any sudden
move. Hang loose.
But the time is coming. It will not come until the US consumer falters. This
is why I know it is not come yet.
The US consumer is going along very well. I have said and I will say, that
until the US consumer drops the fat lady does not sing. So calm down. The
buyers of the US dollar bonds are pulling back but this is not the end.
We are in a pre stage of it. They are pulling back and that is all.
Make no speculation now on this matter or you're going to get hurt. The dollar is going to continue to rise in my estimation. I am not an investment
advisor, so don't make any speculation on my words.
As I have said this is a time for capital preservation not speculation. Keep
it that way.
Chris Laird
Oh by the way I'm working again ;) on a newsletter. I think its going to go
ahead this time. Let me know if you are interested....
tec_10000@yahoo.com
May 23, 2005
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