Archive - Jul 17, 2011

Outgoing Joint Chiefs Chairman Admiral Mike Mullen’s bumbling replies to questions by “automated” university students during a mid-July Beijing visit were symptomatic of total disarray in U.S. China policy. Instead of clear-cut defense of no military takeover of Taiwan, with its 25 million the only free society in Chinese history, the Admiral backed into a defense of U.S. policy as if the Taiwan Relations Act were an impediment Washington leadership had difficulty overcoming.

And another chart that needs additional exposure...

Another Canadian pension policy blunder on its way...

We previously presented the following chart from Citi in our report on America's brief flirt with income statement austerity, although we feel we may not have emphasized it enough. So, in an attempt to remedy that situation, here is the chart that casually explains most if not everything that is wrong with the US healthcare system, currently the cause of so much political bickering and consternation... not to mention future spending.

"It is telling that, once again, a New York court is more interested in exposing fraud taking place right here in Palm Beach County than our own Florida courts, even citing to the investigation of the Florida Attorney General"

You don't need a degree in macro economics to understand an economy. Just because an economy is complex, the analysis need not be. I've been studying the change in GDP from Q4 2010 to Q1 2011 to get a sense of where the economy is regarding contraction or expansion. I have a sense the economy stands today where it stood in December 2007 the very month the great recession began. I've shared various technical charts showing striking similarities with the 10 year treasury market and equity markets comparing the price action between May 2011 to present and October 2007 through December. The big component though was the macro picture. You could easily argue it is far closer to recession now than it was in 2007 when Q4 07 GDP was 2.9% only to print (.72)% the very next quarter. With Q1 2011 GDP at 1.9% the margin for error is far less than in 07. But that is not enough to base an investment decision upon.

I think it would be fun to run a newspaper--Citizen Kane

If the United States had to pay the interest rates the Italians have to pay, the US would face a game changer...

Sorry to be rude, but ...

Fed Chairman Bernanke told Congress the recent rise in inflation appears likely to be transitory, where in fact the only 'transitory' effects are the QE3 euphoria and the once prevalent "deflation alarm".