Archive - Apr 11, 2011 - Blog entry

Should we be cautious, or is this just fearmongering? I don't know ... make your own decisions.

Yellen is a Dove. I want her on record.

WTI, Brent or Gasoline?

Future's so bright, I gotta wear shades ...

It’s a scam folks, it’s nothing but a huge scam and it’s destroying the US economy as well as the entire global economy but no one complains because they are "only" stealing about $1.50 per gallon from each individual person in the industrialized world.

What is very clear to me is the the "American Sanzarus" are either in a state of psychotic denial (possible) or are serial liars.

Here are some quick hits of economic data that have been reported in the past several days. I am convinced that "something is still happening" in that we are seeing continuing signs of improvements in most major categories of economic data (excluding the real estate markets) and we would be foolish to ignore the trend. But ...

Bernanke and pals believe that if they can make the stock market rise, people will feel richer and will start spending money again, insuring that the US economy (which is 70% based on the consumer) will come roaring back to life. This sort of thinking is that it’s so superficial as to be laughable, especially for those claiming to have an advanced education from a top university. Indeed, the fact that the S&P 500 goes from 1,000 to 1,330 DOESN’T mean that those who own stocks are that much wealthier. This is because the nominal price of stocks (what the S&P 500 is priced at) IS NOT the same as the PURCHASING POWER of stocks.

We are entering an inflationary death spiral. YES, we might have another round of debt deflation, but the flight from the US Dollar is already beginning worldwide. Saudi Arabia has sent representatives to China and Russia to strengthen trade ties (an obvious move away from pricing Oil in Dollars). China and Russia have agreed to begin trading in their own currencies rather than Dollars. And in some emerging markets people don’t even want to accept Dollars in business transactions anymore.

A must read comment on comparing risk across pension funds...