Thursday, August 18, 2011

China Eats My Shorts

        As regular readers of this space will know, I've been shorting the Euro for a while now, without much success.  The Eurozone is a debt basket case, and sooner or later the Germans and the Greeks will not deign to live in the same house together - let alone lie in the same bed.  So why am I not making money hand over fist?  At first my problem was that the Euro and the US dollar that I short it against were in a "race to the bottom", ie. they were both floating earthward from their lofty heights, the former because of continuous bailouts and ratings downgrades, and the latter because of the debt ceiling debacle followed by the S&P downgrade.  In the long run, it only makes sense to me that the USD will come out on top of this (although you'd never know it from the shameful display Congress put on two weeks ago) because it has to be easier for one government to deal with its debt than 17 disparate governments.  Today, however, I learned that China has entered the mix, ever eager to subjugate the U.S. any way it can, and is buying Euros like crazy to support it against the USD.  Me against China.  I knew it would come to this someday.  So now, China officially "owns" the U.S. and Africa - and is buying Europe.

The Good News:  It's rodeo weekend in The Jewel of the West!