Hi Sharky:

There are really only two options for the entirety of the western world, with only a few exceptions ( Norway, Sweden, Canada and darn few others). Either face default and collapse of their economies or, create extreme amounts of currency and inflate ones way out. In my opinion they will choose the latter. As a result, we will see a rise in value of the currencies of the emerging economies of Asia, South America and Africa. The result will be a diminunition in the economic power of the US, and Europe. As a result, commodities denominated in the Euro and US$ will rise due to inflationary pressure with a corresponding increase in relative wealth of the developing nations.

The hard assets of gold, silver, platinum group metals, food and grains, oil, natural gas, raw materials, and other hard assets will offer the only way out for the rest of us. Canada will fare better than the US but will not match the developing world nations due to the contagion of US economic malaise. Sorry to be so cheerful. But the handwriting is on the wall. Spring and summer for the developing world and winter for the developed world. The developing world has low debt and the west, with only a few previously mentioned excepions, has bone crunching, debilitating debt. As the cost of oil climbs in $ and Euro terms and as oil becomes ever dearer in true cost and availability, we will see long range international shipping to become less practical due to increasing cost predicated on diminishing supply and increasing cost.

Sorry to be so cheerful. But that is how I see the macro picture. As for Connacher, do they have the staying power to get to the other side of the picture?

Brian

Brian