Archive - Jul 11, 2013 - Blog entry

Welcome, Brother and Sister. Peace be unto you.  So a while ago we finally had a chance to meet, strike hands and exchange pleasantries, after all this time of crossed schedules and missed opportunities. Chumba has been busy with the trials and tribulations of personal apocalypse. Indeed, we shall all experience our own revealing in one way or another, and sooner rather than later, perhaps sooner than you expect, or want.  Let us sit down now at the table. I'll bring out the board. It'll take some time to set up all the pieces and explain how each operates. After all, if one is to engage in a contest, it is only fair that each player know the parameters of engagement.

China's GDP number should be in the 6.7% range for the quarter.  This is the black swan ...

My muse today was from the movie Network from nearly 40 years ago. In this clip you merely need to substitute global central banks (Fed, ECB, BOE, BOJ and etc) and mega-banks (GS, JPM, C and etc) into the mix.

One minute we hear that Quantitative Easing is going completely, then it’s going a bit and withdrawing in side-steps and little paces and then it’s going to carry on. Where do we stand?

Congratulations Bernanke, you’ve created an even bigger bubble than that of 2007. Your latest statements about providing liquidity have destroyed completely destroyed your credibility as Fed Chairman. And they’ve bought you at most a brief pause before this whole mess comes crashing down.

Snowden Is a Traitor to the Political Elite … But a Hero to the American People

Gold surged 3.3% or nearly $50 from $1,248/oz to $1,298/oz after Federal Reserve Chairman Ben Bernanke admitted that the U.S. economy continues to need a highly accommodative monetary policy and will do for the “foreseeable future”.

Gold climbed for a fourth day to the highest level in more than two weeks due to safe haven buying after Bernanke also admitted, what many more realistic analysts have been saying for some time, that the 7.6% unemployment rate probably "overstates the health of the labor market."

By pursuing QE too long, the FOMC has engineered a repeat of the periods of market losses and negative accrual that nearly crushed the banking industry in the 1970s and 1980s, only worse. 

The DRC has comparisons with Mongolia but offers far better risk/reward potential for investors.

It has all gone belly up if we look at the EU and we are honest. Yes, they might be trying to paper of the cracks and yes they might be shoving some super strong glue in their to stop everyone pulling in different directions, but if they are really truthful about it, the EU28 (now that Croatia has become a member since July 1st 2013)