Hi Tom-

Remember the fun we had in December when you discovered the whole global
economy was hanging by a thread? You learned how the whole planet was put
at risk by move-up home buyers and granite countertops? Then on March 9 the
new .gov started farting rainbows and unicorns and you went back to minding
your own business and trusting your “investment professionals” since
everything was suddenly okay again? Even though I told you it was only a Bank
Reflation Rally? Then the rally hit the wall and everything went into Gold & Silver & Oil that you either did or did not buy or whatevs? Remember all those good times?

Now they’re back.

“What the Chinese are doing is moving some of their long-term assets into
short-term so they can make a quick exit strategy,” Peter Navarro, an
economist at the University of California-Irvine, told CNBC this week.
“Plus, they’re setting up all these bilateral currency deals with countries
around the world so they can back the dollar out. We are literally living
on borrowed time.”

And…

“The stock market bubble, the Treasury bubble, the real estate
bubble—what is the common link between all three bubbles? The dollar,”
says Lee Markowitz, partner at Continental Capital Advisors in New York.
“The end is near for all the bubbles because the dollar is getting so much
pressure from currency markets and politicians around the world.”

Mostly Brazil, China and Russia—3/4 of the BRIC countries (India is still
your BFF—for now).

But wait, there’s more….

“Every investor today should have a dedicated allocation to inflation
protection,” Tanous says. “You have to get into commodities that have the
following two features: Little substitution and growing demand.”

Now, read this and welcome back, Tom. You were missed while you were on Planet
Change smoking the Hopium:

http://www.examiner.com/x-6012-State-of-the-World-Examiner~y2009m6d3-The-Big-Collapse-Could-Be-Very-Near

(Since you probly won’t read it, here’s the money shot: “The end of the
current financial system, as we know it, may be imminent. If you would have
asked me even two weeks ago if collapse was imminent, I would have said it
was highly unlikely, now I am saying it is possible. Bernanke may be able
to patch things up short-term, if he is lucky, but in the long term the
U.S. financial structure is in serious trouble. There is just too much
Treasury debt that needs to be raised. An international panic out of
Treasury securities, even a slow controlled panic, means the Fed will be
the major buyer. This will ultimately mean record inflation.”

Good to reconnect, Tom.

Your old pal, The Abyss

(I’m still here, Tom)