Archive - Nov 6, 2010 - Blog entry

Let’s face it… if an alien came down from outer space and compared the US to other countries, it’d think we were just another 3rd world country that somehow managed to get bigger than the others. We’ve got the same levels of corruption, fraud, and lies, combined with the same looting, indebtedness, and crumbling infrastructure.

In plain terms, this is the beginning of the end. When an entire country’s economy is based on imaginary math, accounting gimmicks, and ideas that don’t even make sense on paper (let alone in reality) you know that economy will collapse.

A review of employment data shows some good signs, but not enough to overcome the negative headwinds.

Despite the recent price surge in crude oil this week--thanks mostly to a Fed's QE2-induced weak dollar, the fact is that crude inventory levels are actually sitting at the highest in 2010. This, plus other market factors coud pressuure crude prices to trade back down around the $75 to $85 range.

Once again we find some strange activity occurring in these markets from a trading perspective, and it is time that the increased staff and resources of the beefed-up CTFC enforcement division look into crude oil and silver markets, in particular.

It comes down to unreality--And it's fine with me 'cause I've let it slide--Don't care if it's a buyer's town or the sell side--I don't have any sound reasons--I've left them all behind--I'm in a Quantitative Easing state of mind...

QEII is truly lifting all boats, even the leaky ones, like the US stock market. The debasement of the dollar this policy assures will keep money pouring into virtually every tradable asset in the world, including stocks, bonds, currencies, commodities, precious metals, and yes, even real estate. The Fed knows it is creating a monster with the enormous amounts of money it is now creating, and that someday, it will have to drive a giant steak through its heart in the form of huge and cathartic interest rate rises.