Question Everything

"Question everything, do your own research, pay attention to details and see the world" said a famous investor quoting from his new book. The new administration's make love not war theme also called a "New Foundation" sure is being questioned by everyone who dares to challenge the new world order according to the TAX man. These are all positive/ needed developments as WDC, LLC tries to rewrite contracts and the history books with even more debt creation. At some point it will snap....but until the markets really unfreeze the "bid" will be in the US Dollar and bond markets.

As the US Dollar makes it's rounding top and Bonds make their rounding bottom we know where we don't want to be and that is: Short the market, long cash or bonds or invested in Europe. Nothing illiquid or small cap or not in a leadership position.

The most important observation now is inventory reductions, pending replacements and true new supply side capabilities. Commodities have put in a bottom suggesting this first step is now in place.....China has been entering into long term contracts all over the world securing raw materials....when all we do here in America is create more future liabilities....many call this ludicrous.

One important piece to this puzzle is an example where last Friday a US Court of Appeals panel in WDC, struck down the Bush Administration's five-year plan for offshore oil and gas leasing off Alaska's northern coast. Current drilling in North America is approaching an all time low in modern history...once inventories get used up...depletion plus supply side destruction is not going appease Demand needs in the near future.....almost all natural resource stocks have also stopped going down and are putting in major bottoms. The greening of the world is not going to come close to this major forming delta in inventory needs....

The Chairman of a major USA oil company said last week, "The historic and maniacal focus on carbon dioxide is intellectually repugnant to me."

Carbon sequestering and credits is a waste of time and very valuable money....

As one friend said the other day, his focus is three things: 1) How to protect your assets. 2) How to protect your income. 3) How to protect your business. The local papers here today talk about raising state income taxes.....they will be approaching the highest level in the nation....this is after a 30 to 40% increase in property taxes this year. Smart investors who have seen many business cycles do not like what they see right now. Nor should they.

Danny Boy seen here in Black and White........things are quickly moving that direction.