Archive - Jan 2013 - Blog entry

The Fed is growing increasingly splintered as an organization. The media hasn’t really picked up on this issue yet. But once they do things could become quite problematic for the Fed... and the financial system.

The benefits of higher stock prices are soon negated by higher gasoline prices leading to a market sell-off.....

Here is the picture that answers all the queries stated in your letter.

My colleague and erstwhile nemesis Gonzalo Lira posed the question above in a recent essay, and it is indeed a most puzzling one.  Given that the world’s central banks — joined most recently by a shockingly reckless Switzerland — are waging all-out economic war by inflating their currencies, shouldn’t gold be soaring?

There has been a tightening of European financial conditions. Two more pieces of evidence were reported today. This issue may very well overshadow other issues at Draghi's press conference next week. German 2-year rates are moving above the US-- a 30 bp swing since early Dec. Meanwhile, US rates are rising relative to Japan. The dollar-bloc (and sterling) continue to under-perform. We also look at the US economic calendar for the day that features the ADP employment estimate, the first look at Q4 GDP and the conclusion of the FOMC meeting.

This year, China is set to burn more coal than the rest of the world combined!

And now it's on us to mobilize and make sure at least one of us in each district contact our representatives and do what we can to inform them.  The longer this goes on, the more bad algo's will manipulate the system

Inverted Klepto Marxists on the march...

How long will the other Central Banks tolerate this before they initiate a currency war? Both Germany and China have fired warning shots at the Fed. And we all know that just beneath the veneer of goodwill, tensions are building between the primary players of the global financial system.

Gold fell $4.00 or 0.24% in New York yesterday and closed at $1,654.90/oz. Silver climbed to $31.30 in Asia before it eased off to $30.73 and finished with a loss of 1.09%.

Gold in USD, 1 Year – (Bloomberg)

Vive Les Finance!

The state-sponsored chorus about the end of the debt crisis in the Eurozone has been deafening.

Icahn was just blowing smoke.

Department of Energy Wants to Let Radioactive Scrap Metal Back into Consumer Products