Afternoon Reading List

Frank Said to Back Broader Fed Audits (WSJ) Finally some good news out of Washington.

The Shell Game - How the Federal Reserve is Monetizing Debt (CM) How the Fed is deceiving the American public.

Countdown to Dollar Implosion Madness (MISH)

Shanghai Cracks (BP) China showing weakness

Similar Pattern Repeating (ZenTrader) Market starting to look rather toppy.

Warning!!! Possible Sell Signal......

I am starting to see some cracks in the current rally.....I would not initiate any new long positions at this time....

Honda Motor

This one really could go either way. Daily chart looks bearish with the rising wedge. Weekly chart is nearing resistance from the megaphone's resistance line but I could easily see HMC break to the long side.

GMT

GMT is looking like a nice long if it can breakout of the 60 min candle. A breakout of the 60 min triangle should give GMT enough momentum to break through the long term daily head and shoulders.

VERY good video!!!

This guy tells it how it is....let's get rid of the Federal Reserve

The Fed is deceiving the American Public!!!!

The Fed is going behind the public's back and monetizing way more debt than they will admit too. That is why Timothy Geithner doesn't agree with an audit of the Fed. He knows that the Fed is stimulating an artificial demand for U.S. treasuries. This means that the 'real' demand for U.S. debt (U.S. money) is nonexistent. The only thing left to do now is way for an all out collapse of the U.S. dollar and the international monetary system.

Geithner: Auditing the Fed Is a “Line That We Don’t Want to Cross”

August 26th, 2009

Via: Corbett Report:

In an interview released today by Digg and the Wall Street Journal, Treasury Secretary Timothy Geithner was pressured about the growing popular movement to Audit the Fed spearheaded by Texas Congressman Ron Paul. A visibly uncomfortable Geithner attempts to dismiss the question by stating “I’m sure people understand that you want to keep politics out of monetary policy.” When Geithner is again pressed on the issue, he makes the stunning assertion that conducting an audit of the Federal Reserve—something never before done in its 96 year history—is a “line that we don’t want to cross,” proclaiming that such a move would be “problematic for the country.”





Here is the proof that the Fed is hiding something VERY important on its books......

Source: ZeroHedge

The Federal Reserve has effectively been monetizing far more US government debt than has openly been revealed, by cleverly enabling foreign central banks to swap their agency debt for Treasury debt. This is not a sign of strength and reveals a pattern of trading temporary relief for future difficulties.

This is very nearly the same path that Zimbabwe took, resulting in the complete abandonment of the Zimbabwe dollar as a unit of currency. The difference is in the complexity of the game being played, not the substance of the actions themselves.

The shell game that the Fed is currently playing does not change the basic equation: Money is being printed out of thin air so that it can be used to buy US government debt.

When the full scope of this program is more widely recognized, ever more pressure will fall upon the dollar, as more and more private investors shun the dollar and all dollar-denominated instruments as stores of value and wealth. This will further burden the efforts of the various central banks around the world as they endeavor to meet the vast borrowing desires of the US government.

One possible result of the abandonment of these efforts is a wholesale flight out of the dollar and into other assets. To US residents, this will be experienced as rapidly rising import costs and increasing costs for all internationally-traded basic commodities, especially food items. For the rest of the world, the results will range from discomforting to disastrous, depending on their degree of dollar linkage.

The United States Government is Insane!!

Cash for Clunkers was an absolute disaster for the country......now this???

from: The Disciplined Investor

Cash for…. Appliances. Really?

August 26, 2009

Now that the Cash for Clunkers plan has been so successful (at least at helping to pump GDP) we are in for Part 2…. Cash for Appliances. No need to trade in anything it appears…

Will this be used to pump up DURABLE GOODS and thereby the GDP again? So, GDP could be said to be moving higher on direct government infusions. Is that a good thing? YES and NO….

We need to see non-stimulative buying and consumption in order for the recovery to take hold. Take a look at this video clip…

What do you think about this? Waste of money or smart move?

Visit msnbc.com for Breaking News, World News, and News about the Economy

Is this rally healthy?

One fact that stands out to me about this rally is the leadership. The market is being led higher by zombie companies owned by the government. If that doesn't ring an alarm bell I'm not sure what will.

Here is a nice chart clearly explaining the leadership I'm talking about.....

Possible Commodities Pairs Trade

Crude has been outperforming natural gas steadily since the beginning of the year and the tide could be changing. (first line left to right: Crude weekly; Natural Gas:Crude ratio weekly; Natural Gas Weekly) (second line left to right: Crude daily; Natural Gas daily)

*Notice the similarity from peak to bottom in Oil and Peak to current price in Nat gas

Market Watch

Market is forming a bearish rising wedge and nearing heavy resistance.....I wouldn't initiate any new long positions at this time, however it is too risky to start building short positions, this is a place for cash.....

Morning Briefing

Here is a must see video and a few good reads......

Ben Bernake: World's most dangerous man (MISH)

Bernake Bashing (BP)

AP: Consumer Straining -- Another Green Shoot? (Fund My Mutual Fund)

The Welfare State and the Promise of Protection (Mises Institute)

Keep Gold in your mind

Lunchtime reading

The King Report (BP) Deceit and duplicity are encouraged if not demanded. Earnings are crafted; balance sheets cannot be trusted; government economic data is illegitimate.

What the Stress Tests Didn't Predict (NYT)

Bernie Madoff dying, making platonic friends, and smoking pot? (Dealbreaker)

Tim Knight's Big Picture View (Slope)

Cumulative Deficit Estimate for Next Decade Increased $2 Trillion....Since May (Fund My Mutual Fund) This is a must read by any self-respecting American.

Stock worth watching

Here we have a chart of FAST showing a VERY large basing pattern...........could be poised for a pretty large move higher, keep watch

Dry Shipping Index continues to fall

The BDI continues to diverge from the stock market.......this is fundamentally bad for the "recovery"

Morning Linkage

Global Debt Bubble, Causes and Solutions (MISH)

Boom and burst: Don't be fooled by false signs of economic recovery (BP)

Capitalism: A Love Story (BP)

Dollar in Jeopardy (Zen Trader)

World Economy Emerging From Worst Recession Since World War II (Bloomberg)

short squeeze candidate

check this chart of SOHU....perfect bullish pattern...and it has a 19.41% short float....any break out and short covering could send this thing sky high

Must Watch