The Fed is in full scale flight from the U.S. Dollar.

With the latest 50 basis point cut (1/2 of a percent), the Fed Funds rate now stands at 3%, significantly lower than the headline rate of inflation (which was a lie the day it was written).

It seems that the U.S. is no longer interested in the production of anything with the exception of more asset bubbles. Tech, housing... what's next?

The U.S. energy consumption data does not support recession fears. Consumption of total fuels is up, year over year, in the most recent 4 week period. You see, it does not matter if you look like crap, feel like crap... what matters is how you SMELL. So far, the consumption data says the economy smells OK, and with the Fed enthusiastically joining the ranks of the world's oldest profession... I think we squeak through. Of course, I will continue to follow the energy supply/consumption data and report back if anything changes.

Yours for a better cheap money world,

mentatt (at) yahoo (d0t) com