Monday, August 31, 2009
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.
Saturday, August 29, 2009
Friday, August 28, 2009
Thursday, August 27, 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......
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.
Wednesday, August 26, 2009
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?
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)
Monday, August 24, 2009
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.
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)