Eastern Seaboard Coastal Development

Just like after Katrina, we have not seen New Orleans come back to its former population.  Much of its housing was built below flood levels and these developments were unsustainable.  People learned the hard way, the folly of their ways.  Now this lesson is being learned in New Jersey and elsewhere on the East Coast.  I am sure the US Federal Government will try and "fix" everything and make everything right.  And I am sure that we will continue to hear cries of "We will rebuild!", I don't think that will happen.  At least in places where development does not make sense that were heavily damaged and at least on the same scale as before.  I just don't think that the money or energy is there.  It took 75-100 years to build up these areas and forget the harsh lessons that Mother Nature has for those who taunt her.  It has only taken hours for the sea to reclaim what belongs to her.  Best leave it that way.  There will be those who will try and rebuild it the way it was and some will be successful to some degree.  But overall, there will be less development on the beach, because there has to be less.  There are no longer enough resources to support it.

USD Dollar Bull

OK. So my last post projected that the US Dollar was about to breakout.  It didn't happen.  At least not yet.  But it did not break down.  After trying to breakout in June-July, it failed and fell back and looked headed for a breakDOWN.  That has not played out yet either.  So while it is frustrating, my belief is that the bull is trying to frustrate as many as possible.  Now Ben Bernanke may decide to start printing US Dollars like crazy and flinging them out of helpicopters (or some such crazy idea!).  But my feeling is that he is getting fatigued.  And while I am sure that he would come to the rescue in the case of a big crash, it seems to me that he is trying to do "just enough" to keep things together and not let them get out of hand.  He had to do something before the election, but it modest and partially limited through the end of this year.  So I believe the USD bull market is intact.  What does this mean for precious metals?  Not sure, but probably not good in the short run.  Although metals weakness would probably be a good opportunity to accumulate for the long run, because the US currency is as flawed as any other paper currency and may eventually be challenged.  But for now, stay long the USD (and stay away from JPY which seem to have topped recently).