The Last Sober Currency
When we look at all the worlds major economies, all we can see is a pub full of drunks.
Whole drunken economies, which do nothing but sit at the bar and guzzle shots of stimulus like only true alcoholics can.
And who is bartending, serving up stimulus shots like its the last call?
Central Bankers!
Bartenders like Bernanke and Trichet have been passing our rounds on the house since late 2007.
Unfortunately, it seems like this Global party bar is going to Pull an All-Nighter and then some.
What happens when entire economies get so drunk that they start to trip over themselves? What happens to the rest of the world that is stuck holding currencies from these drunken nations?
Lets just say… Its going to get Ugly!
The best thing we can do is hold the one Sober currency left in the world. As far as were concerned, it will be the Designated Driver or the Last Sober Currency when this stimulus finally exposes the drunks for the reckless nations they are.
Not Convinced?
Lets take a closer look at the facts
Out of 43 countries, 41 are Now Drunk on Debt
Each week, The Economist magazine tracks the economic statistics of 43 nations.
Amazingly, only two countries in that universe sport twin surpluses or positive trade and budget balances. And of those two, only one country makes that special grade in the OECD or the Organization for Economic Co-operation and Development.
Norway.
No other country among the worlds mature or even emerging economies can claim twin surpluses. Thats incredibly huge.
Its important, because drunken nations are now fighting sovereign debt crises in the EU. These countries are fighting with the market as bond investors continually demand higher rates to take on their risk debt.
If you didnt know, at EFX we dont rely solely on the Exotic Currencies to ensure our future. We utilize numerous strategies to ensure our success and the long term success of our ExoticFX Members. Part of our team calls themselves Commodity Guys. They like to look at energy companies, food items and precious metals for the long term.
But in addition to owning gold and a basket of commodities for diversification purposes, their favorite currency remains the Norwegian krone.
There is no doubt it will be the last currency standing in a world full of drunks.
Again, the Norwegians have the only positive trade and budget surpluses in Europe. More specifically, the krone is the only currency in the western hemisphere to sport a trade and budget surplus! Thats enough to put it on my buying list.
But then you must take into account that Norway is a major oil exporter.
We are bullish on oil, and longer-term we think natural gas will make a serious comeback as well. And Norway just happens to be the largest oil and gas exporter in Europe and the ninth largest producer in the world.
That makes the Norwegian krone an oil play.
In fact, the performance of the krone is highly tied to not just oil revenues, but the cyclical nature of the global economy. The currency also shines thanks to Norways fiscal surpluses and Norways strong external account.
But there are other reasons to love the krone as well
Twin Surpluses Shine Bright
Norway is the only nation in the world that has a 9.4% budget balance as a percentage of its gross domestic product (GDP). And its trade balance represents 13.1% of GDP, according to The Economist.
Those are impressive numbers, especially in a world drunk on debt.
On top of that, Norways sovereign wealth fund (thats mostly oil profits) manages more than US$500 billion in assets and ranks as the biggest in Europe.
Combined with the bullish outlook for oil and gas over the long-term term, Norway is a great place to park some currency diversification.Indeed, in a world full of drunks, the Norwegian krone seems to be the only sober currency left thats not drunk on its own debt. Go long the Norwegian krone now to profit.
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