Archive - Oct 2013 - Blog entry

All bets are off.

By keeping interest rates near zero, the Fed has been hoping to push investors into the stock market. The hope here was that as stock prices rose, investors would feel wealthier (the “wealth effect”) and would be more inclined to start spending more, thereby jump-starting the economy. This has not been the case. Instead the entire capital market structure has become mispriced.

Already, the Chinese have stopped accumulating dollars - preferring safer currencies, infrastructure, hard assets and commodities and of course gold. Even a small amount of Chinese selling  could lead to substantial dollar weakness and much higher bond yields plummeting the U.S. into another recession.

Nothing further needs to be said...

"We Ought to Come Up with a Way of Stopping It" ... i.e. the Free Press

Public Enema...

There are people in the world that go to work every day to end up stating the damn obvious. 

Every now and then, it is good to refresh knowledge of what is truly important in life. So it’s time to post “The Greatest Speech Ever” by Charlie Chaplin. Charlie Chaplin was known as the greatest silent actor ever. The most powerful excerpts from his speech, still very relevant today, in my opinion, are below:

Everything you say about the U.S. economy jibes with my experience as a real estate investor in Chicago.  The vast majority of my tenants are low-income (their rents are mostly subsidized by our fine government), but a couple make a decent living and reside in luxury condos downtown.  Based on what I've seen during the past 5 years that I have been doing this, I completely agree that our financial system is totally, utterly screwed.

Jansen notes that this is a new record for exports for the small country with a yearly estimate of 2,912 tons for exports.  It is surmised that 1,100 tons of the gold bullion is set to flow East to China or Hong Kong.

China Has Just Surpassed the U.S. As World’s Largest Importer of Oil

Earnings can be massaged in countless ways to beat estimates. You can release loan loss reserves, massage depreciation numbers, implement one time charges or writedowns, reprice bonds, etc.

Our hypothesis is simple: if money growth exceeds the GDC metric a deflationary busts will inevitably come. If authorities refuse to accept reality and print more fiat money at the first sign of bust, they may “save the day” but they will “ruin tomorrow”!

The guys that control the pipes are most likely where the NSA gets most of its data. Proft can be had in businesses that help end users proof against such blatant snooping, spying and virtual/actual eavesdropping.

Bitch!