Sharky:

1. I feel the US$ is not much better, if any than the Euro and that the Bond Vigilantes will as a final task, address weakness in the $. Due to our position as the reserve currency, we will just be the final chapter in the process.

2. The more egregious Obamas fiscal excess lunacy becomes, the more and greater the retribution of the Bond Vigilantes will be. In other words, the US$ will also face the music for its fiscal lunacy.

3. All hard asset classes and currencies that have been more fiscally responsible , (or less fiscally irresponsible)will benefit from this finality.

4. In such an environment, hard assets and their producers who have been more fiscally responsible will benefit. Firstly, from appreciating commodity prices and seecondly, from increased demand for their commodities. Result, a seismic shift in world relative economic power and influence. This is a situation which will take decades to address and alter.

5. As a primary hard asset producer, Canada should relative to the US and Europe benefit from these developments.

6. Connacher, if it can survive for the next two years, should benefit from all of the above factors. And therein lies the uncertainity. Can Connacher withstand the forces and headwinds generated by a risky, financially over leveraged position?

Brian

5.