How Macro Can You Go? – Part 3

If it wasn’t for the fact that the U.S dollar is the world’s “current” reserve currency – I’d likely have a wider range of  things to write about, and I need to be bit careful here.

Frankly – I’m bored stiff of the debate. If it where the “Aussie” or the “Loonie” or the “Kiwi” whatever…same this is the current situation, and you’ve got to look at it for what it is.

The world’s reserve currency has changed many, many times in history –  and will most certainly change again. If you can’t wrap your head around that well…’ll need to dismiss “human history” as well.



The current “news headlines” making light of  the American Dollar’s day-to-day “strength or weakness” have little bearing on the larger macro changes at hand, as these things take years, and years , AND YEARS to come to fruition.

A simple example. You wouldn’t have blamed the CEO of a large American company back in the 80’s for crunching the numbers, and realizing that “outsourcing her manufacturing to China” would save investors millions – you’d have praised her!

Then another CEO caught on, then another and another…yet another – then “another” until finally – BOOM!

20 years later and America has more or less sold out it’s entire domestic manufacturing industry! Oops.

Good night Detroit!

Point being…….these things take years to manifest in a literal “news headline slap in the face” , and this “is the point”. The “macro” is there behind the scenes and will “always” provide valuable insight when looking to assess and evaluate the “micro”.

The question remains…How Macro Can You Go?


5 Responses

  1. Jworthy July 23, 2013 / 9:01 pm

    Hey Kong,
    Just wanted to let you know that I’m really enjoying this series. I look forward to the next article.
    Being a repatriated-Canadian-ex-pat, your perspective is very fascinating to me… and, a good reminder there is still (and always will be) a lot more going on out there than I could ever accurately conceptualize.

    So thanks again for sharing your knowledge. I am excited to follow your well-worded musings more closely.

    • Forex Kong July 23, 2013 / 9:14 pm

      That means alot Jworthy – thank you.

      At times I question if readers get much out of my perspective at all – as its often suggested that I “pep it up” a bit.

      Again I so appreciate your interest.

      Thank you.

  2. Power Corrupts July 24, 2013 / 12:53 pm

    I’m reminded of Indiana Jones negotiating the booby trapped passageway. Get through alive and you have a shot at the holy grail. Lots of skeletons along the way of pilgrims who didn’t quite make it though…

    • Forex Kong July 24, 2013 / 1:19 pm

      Too funny man…..a guys gotta do “something” to keep this stuff fresh!

      Our adventure takes us to China next, like we all didn’t see “that” coming!

  3. devilyell July 24, 2013 / 1:54 pm

    Hi Kong,
    I have to pile on and also say I really dig your new macro series!

    >> its often suggested that I “pep it up” a bit.
    Man, you always put out wheat, not chaff, and meat, not bones. All we readers need do is pay attention.

    >>big as we are small
    I say we are more small than big. Our imperious egos and evolution have put us at the center of our individual, tiny little universe no matter where we live. Granted, we do have a huge impact on our own little circles.
    The quantum and the cosmological extreme ends of the spectrum render us pimples on the elephant’s ass.
    Cool that you brought that up.

    I’ll bet a lot of your readers are also digging the philosophical and existential issues you’ve introduced into your macro/trading series. I think we are small but that shouldn’t stop us from trying to be bigger.

    Outstanding you big ape!!!!

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