Archive - May 2013 - Blog entry

IRS Targeted those Educating Americans "on the Constitution and Bill of Rights", or "Government Spending,  Government Debt or Taxes" or Anyone Working to “Make America a Better Place To Live”

The Fed knows this and is now trying to prepare the market for withdrawal. But the market is on total life support from the Fed. Take away the Fed punchbowl and the party stops.

what does it mean?

Driving the sentiment was the report that U.S. jobless benefits decreased to their lowest rate since 2007. Philadelphia Fed President Charles Plosser forecasted that day unemployment will drop to 7% by December 2013 and he favours reducing the Fed’s $85 billion monthly bond purchases next month. Plosser however has no vote on Fed policy this year.

While hedge funds are seeing outflows of $20.8 billion from gold funds this year, BlackRock Inc. the world’ biggest money manager is still bullish, reported Bloomberg.

Critics of Japanese policy worry about its potential failure, here is a discussion of what happens if it succeeds.

A look at the main drivers.

The liar, I mean lair of Beezle Ben...

Politicians love good asset bubbles. Until they blow up. Which they always do.

There is a term for when asset prices become detached from fundamentals, it’s called “A BUBBLE.”

There are signs that China's economy may have a short-term uptick but that shouldn't detract from what remains a poor long-term outlook.

The words "Shit Heel" come to mind.

The dollar rallied in the second half of last week, but looks set to consolidate first before extending the rally.  The yen was not the weakest major currency.  That dubious honor goes to the Australian dollar.  

The Bernanke Chicago speech became little more than a side show Friday. He did say the Fed was keeping a watchful eye on yield risk-taking given ZIRP. He’s a little late to that observation methinks.

Japan should serve as a lesson to central planners around the world. Japan’s stock market/ real estate bubble burst in the early ‘90s. Since that time Japan has launched NINE QE efforts equal to roughly 25% of its GDP. And GDP growth has worsened despite these efforts from 2% to 1%. Ditto for employment.

An excerpt from today's speech by Dr Sigmund Fraud