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Charles Johnson By Beverly Chandler:

Speaking at the Opalesque West Coast Round Table in March, sponsored, by Kaufman Rossin Fund Services www.krfs.com Charles Johnson of Tano Capital said that he believed that the biggest bubble today is in currency. "Paper currency is melting down. For example, if you look at the value of Gold denominated in Yen, or Swiss Francs, or British Pounds, or US Dollars for that matter, it actually does not matter what currency you pick as your base; from about 2000 to today Gold has appreciated against every one of them. It is a very weird situation where the actual "unit of measurement" used to price everything else is melting down in terms of its own intrinsic value. All other commodities are appreciating on a nominal basis at different rates, and it leads to a very confusing macro environment."

Johnson finds another major trend in interest rates: "The other major trend is that interest rates have only fallen since the early 1980s. I remember when I started in this business in 1981, the long bond was yielding about 14% per cent. I remember this only too well as I was absolutely positive that long rates had peaked, and shorting the long bond seemed to me a dead cinch lock. So I shorted the long bond at 14% yield and it promptly went to a 16% yield, wiping out me and my......................

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