Archive - Sep 2013 - Blog entry

Plowed $2 trillion of their Japanese deposit base into investments overseas then wondered why the economy at home languished

The U.S. Federal Reserve is insolvent and has liabilities of over $3.2 trillion and yet has capital of just $60 billion. Therefore, it is leveraged by fifty to one, akin to a highly leveraged hedge fund. 

Just when you think that the worst has come, been and gone, there will be more stuff hitting the fan in the very near future and that should serve as a lesson to the next head of the Federal Reserve that central banks don’t usually necessarily have the people in mind when they take things over and end up doing a pitiful job.

The prices of the metals were down sharply last week. Was this manipulation? As you’ll see below, the picture in silver is astonishing.

Gold and silver futures surged 2.1% and 3.6% respectively and the dollar fell on the open in Asia prior to determined selling which again capped precious metal prices. Analysts and media attributed the price gains on the withdrawal of Larry Summers from the race to be the new Fed Chairman, leaving Janet Yellen as the new frontrunner.

The Lord Works in Mysterious Ways...

This weekend has launched a new level of the bull-ghey, as we have our second example this month of the market rallying not on something that happened, but on something that didn't. Thus, I humbly offer more good reasons that the bulls could conjure up to propel us to yet new record highs, because God knows, if there's one industrial powerhouse that we need to safely usher into a successful IPO, it's Twitter. So here we go:

If Vladimir Putin and Barack Obama can get through their tiff over Bachar al-Assad and stop pulling the covers to their own side of the geopolitical bed, then the Russian leader may just up sticks and move into the US where he will be able to spend his money rather than making out that he is a poverty-stricken in Moscow to the Russian people.

...the right of the people to keep and bear Arms, shall not be infringed.

...except in New York, Washington, D.C., Chicago, Colorado, California, etc.? 

Oh, and a Typhoon Is about to Hit Fukushima

Anniversaries and celebrations of past historic events are part and parcel of our everyday lives. We celebrate to remember and to grow up, to change and to learn from what happened.

Does it really matter who manages the Nation's decline?

US Fed's exit plan poses a critical dilemma and underscores important contradictions.  The calendar says Europe should be talking about exits too--as aid packages for Spanish banks, and Ireland and Portugal are to wind down in the coming year--yet more rather than less assistance may be neeed.  

Recent problems in Asia ex-Japan appear solvable. But the time for reform is now if the region's to take the next leap forward in its economic development.

And nothing is under control...