From last Friday to the beginning of this week, it has been colder in Santa Barbara, California than it was in Portland, Oregon or Seattle, Washington. In the foothills above Pasadena, CA the rain came down in torrents, causing flooding and street closures in Sierra Madre. If you are planning to travel to Europe soon you will find that the cost of everything has soared and the exchange rate for your dollars has never been worse. What the heck is going on down here on planet earth?
Commodity expert and analyst Kevin Kerr who writes for Outstanding Investments (www.AgoraFinancial.com) had some interesting comments before the Memorial Day weekend about the dollar's lose of purchasing power, how it impacts travelers, and the next looming international crisis, severe food shortages.
Dollar Situation Getting Critical
"One thing is for sure: Vacations in Europe this summer are going to be very expensive for those using U.S. currency. The dollar slipped again today as weary consumers and traders seem to be capitulating to the fact that the greenback has further to slide. None of this bodes well for commodities pulling back anytime soon.
Meanwhile, everyone is blaming each other, not only for the weak dollar, but also high oil prices. Congress paraded the oil executives up to Capitol Hill yet again, and as usual, it was a farce, a complete waste of time. With all these meetings and votes, you would think that they would actually accomplish something, but no.
They fiddle while Detroit burns. What we need immediately is for all of these idiots in office to set aside the partisan bickering; stop blaming Big Oil, the traders and OPEC; and instead of talking about all this, start doing!
Make no mistake: Oil at these levels is a national emergency, and therefore, drastic measures need to be taken. Drilling offshore on the continental shelf is no longer a choice; it can be done safely, and it’s critical to the U.S. economy [ I wish Kevin would talk more about emergency spending to accelerate the creation of alternative, cleaner and safer forms of energy].
My biggest fear is that this summer, we will have a more active hurricane season, due to La Nina, and that refineries will be damaged, reducing gasoline and diesel output significantly. We have no room for error. [In other words, we are one natural disaster away from a national energy crisis of epic proportions...see why I like the smartly priced energy and precious metals stocks, especially the best-of-breed favorites].
If we see refinery shutdowns or delays, gasoline could easily spike well beyond $5 and $6.[Imagine what that would do to consumer spending and the U.S.
