Gold News

Trick or Treat

Is that a 'Strong Dollar' knocking at the door...?

Goblin: Trick or Treat!

Homeowner: Well, hello, aren't you a cute one! What are you supposed to be?

G: Hey, I'm not supposed to be cute. I'm supposed to be strong and tough. You're supposed to stand in awe of me. Grrr...

H: Well you look cute to me. So what are you?

G: I'm a Dollar...a US Dollar. Look at my muscles. Grrr...

H: Oh I get it. You're a Strong Dollar. Where did you get that costume? I haven't seen a Strong Dollar since Robert Rubin was around.

G: Hey, this is a brand new costume! My mom bought it from Hank Paulson. Just look at these muscles! I can beat up Spiderman.

H: Spiderman, maybe. But I wouldn't mess with the Chinese central bank. And don't even talk trash to the Canadians. They'll knock you loonie.

G:
But Mr. Paulson's got my back. He said so. He said, "I'm strongly committed to a strong dollar." He said that to a whole room full of people just this week in India.

H: You're right, that sounds strong. What else did he say?

G: He said that currencies should be set in open markets based on economic fundamentals.

H: So which Hank Paulson do you believe? The one committed to a strong dollar or the one committed to open currency markets?

G: Gee, I don't know.

H: What else did he say?

G: He said that high-yield debt markets, mortgage markets, and asset-back commercial paper were doing better every day. And that financial innovation is a good thing.

H: It's starting to sound like if Mr. Paulson is not committed, he should be.

G: That's what the people in India said.

H: Listen, I know you want to be strong, but look how small you are.

G:
I've got a bull horn.

H:
What does that do?

G: Just listen...BEHOLD! I AM THE STRONG DOLLAR. YOU MUST BOW DOWN AND USE ME FOR ALL OF YOUR INTERNATIONAL TRANSACTIONS. THAT MEANS YOU, SAUDI ARABIA!

H: Well, that does sound impressive. But you're still small. Look, you've gotten shorter since you've been standing here.

G: I'm not small, I'm just under the weather. I've caught something I can't seem to shake.

H: Well, look, here's some candy.

M: One piece of bubble gum? It's not even Double Bubble.

H: Hey, I'm a homeowner. You see that living room? Paid for with money borrowed against my home equity. And you know what? The loan's still there but the equity isn't. Besides, if you were strong as you say you are, I'd be sitting at a café in Paris instead of handing out imported candy on my front porch. You're lucky to get anything.

G: But one piece?

H: Move it. Nothing to see here...

Goblin II: Trick or treat!

H:
Aren't you a little old to be out Trick or Treating?

G2: Everybody says that, but I'm just big for my age.

H: And what are you?

G2: I'm a Euro. Give me all your candy or I'll beat up the kid who was just here...

Rob Peebles CFA was formerly managing editor of the excellent Prudent Bear website published by David W.Tice & Associates LLC.

See the full archive of Rob Peebles articles.
 

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

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