Archive - 2011 - Blog entry

Numbers may be rigged or "smoothed out", but can't fool the regular Chinese Joe's and smart money. I believe if China stays on its current "prudent course", the real consumer inflation could hit double digit by early next year.

Many investors today, as they learn more about the nature of the Federal Reserve, are asking themselves how the US, the supposed land of the free, permit a non-Government-based cartel to take control of its monetary system? Who controls the Fed? And just how did they attain this unbelievable power to operate with the Government’s approval?

In my last article, I outlined the current financial/ economic relationship between China and the US. In particular I focused on the manner in which China is diverting its money and resources away from the US Dollar and US economy. Indeed, in my opinion, when push comes to shove it is China, NOT the US who holds the trump cards on the major issues.

The announcement by Brian Cowen that he was resigning as the leader of the Fianna Fail party, but is going to stay on as Taoiseach (Prime Minister) until the March 11 election, has put the Irish bailout into question.

Rumors that a special interagency organized crime task force called "Operation Action Jackson" would be targeting organized financial crime this weekend appear to have been completely unfounded...

Is it really all just about (the dream of) "Models & Bottles" or is it something more?

Bash on GE/Immelt day.

As if that's not bad enough, high-level figures are recommending adding LITHIUM and STATINS to the water ...

A big fucking yawn today as less happened in US macro news than in an MBA strategy class...

In Sweden, pension problems are so 1989...

To be clear, China has proven itself EXTREMELY adept at matters of international finance/ trade. With that in mind, it won’t openly challenge the US regarding monetary policy or diplomatic matters until it holds ALL the trump cards and can openly challenge the US without exposing its economy to a massive downturn (much as it did with Japan during the fishing boat scuffle).

Most folks talk about inflation and think of the images of Weimar Germany where people literally burned money for fuel. They don’t think of starvation and food riots. But that’s exactly what’s occurring in the world right now as a result of Bernanke and his cronies attempts to keep the big banks (all of which are insolvent) in business and cranking out the bonuses.

Random thoughts

The US and China as the two current real world powers, have a push and shove relationship. This does not mean that it is directly combative, but it does mean that these two nations are bumping into each other, on all of the world’s stages, especially of late.

Speaking of people who are willing to sell their country out for a Dollar – GE had excellent earnings and I got my daily "WHUCK?!?" moment this morning when Obama named Jeff Immelt the head of his Economic Advisor Panel