Archive - Mar 7, 2013 - Blog entry

New highs will become a daily headline feature it seems until we actually have a down day. 

Thursday, Jobless Claims fell (340K vs 347K previous), Productivity (-1.9% vs -2% previous) and Costs (4.6% vs 4.5% previous) were very poor reports, and the Trade Deficit grew (-$44.45B vs -$38B). Lastly, Consumer Credit expanded to $16.2 billion from $14.6 billion primarily on student loans (in a bubble) and auto loans (subprime auto loans booming).

And the Stock Rally Is Due to Money-Printing

I can't define it, but I know it when I see it...--Justice Potter Stewart

What bothers me is that those who are now pushing the story that deficits aren't a problem, are the same ones who will be crying, "We never could have seen that happening", when the SHTF again.

Warning from the German Bankers Association: central-bank save-the-euro policies cause bubbles, capital misallocation, currency wars, and another financial crisis.

They got a basketball jones...

How Far Will the Government Go to Defend the Too Big to Fail Banks?

The World Gold Council noted that central banks increased gold buying 17% to 534.6 tons last year.

Central banks are among the shrewd investors who buy gold bullion on dips. It was reported that South Korea bought 20 tonnes of gold last month rumoured to be below the $1,600/oz mark. This is the first purchase this year for South Korea, after they purchased 30 tonnes in 2012.  Previously they purchased in July 2012 at the same price levels.

Checkmate, Fed. You’re spending over $100 million per day to create a grand illusion. Stocks are hitting new all time highs, but none of us are any richer for it.

Many see a rising US stock market and a weaker euro and conclude the correlation has broken down. Well, it did break down, but it has risen more recently. Correlation is a statistical relationship not something than can easily be eyeballed.

As Morpheus said to Neo in the film The Matrix:  You still think that is air you are breathing?

Bankers have turned the paradigm of monetary truth upside down. People believe in fiat paper & digital money that is counterfeit and have always ended up in massive collapse to their intrinsic value of zero, and have zero belief in real money, like physical gold and silver, that has served civilizations as money and kept price indexes constant and stable for over 5,000 years.