"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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The Dollar as a Safe Haven?
Given all the turmoil and market uncertainty associated with the tragedy in Japan, not to mention continued unrest across the MENA, it is again very telling that the US Dollar cannot seem to maintain any sort of strong safe haven bid.
Instead it is the Swiss Franc that is the main beneficiary of such flows.
We keep seeing this type of pattern during periods in which risk aversion is the order of the day. The Dollar initially gets the knee jerk safe haven bid and then runs out of steam as sellers look to take advantage of the rally. I am hesistant to be too dogmatic with all this insane volatility but I am wondering if we are already beginning to see the global investment community voting with their feet against the Dollar remaining as the sole reserve currency.
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