Archive - 2013 - Blog entry

The dangerous habit of politicians and governments continually ‘kicking the can down the road’ cannot go on indefinitely. Eventually, the ramifications of this profligacy will be clear to all.

Yet another increase in the debt ceiling and the increasingly parabolic nature of the rise in U.S. government debt will be very supportive of gold in the medium and long term.

Only in the realm of US bank earnings can a 4x occurance be credibly accepted as "one time"! I can feel the hate already...

Uncle Ream Us...

Parallels Between Snowden and the Founding Fathers

Once upon a time there was a conflict that was based upon ethnic origins in Darfur.

U.S Government would rather default than lose their bullion.

Two bailouts, a default and a half later, it should be obvious that Greece was stripped of its sovereignty for nothing. Should I say "I told you so"???

Cannot even begin to say it all...

As Warren Buffet openly states that he believes that a default on US debt will be catastrophic and that lawmakers in Congress need to get their act together and get the federal government back to work by passing the budget we might well wonder if it’s just for show or if he really believes that.

It was a pretty interesting day in the market, of course, since two Fed-related items were happening. First, as was initially reported last night, "Damn It" Janet Yellen was nominated by Obama to be the Chairhuman, once bearded-wonder Bernanke splits in January. It's a little odd that in the midst of all this rancor Obama decided to address this bit of not-at-all-urgent business, but maybe he wanted to remind the market that all that matters is QE-infinity.

While all eyes are on 'pretty woman' at the head of the Fed, things are taking a turn for the worse on the European continent.

... Traffic Jams, Used Car Salesmen, Genghis Khan, Communism, North Korea, BP during the Gulf Oil Spill, Nixon During Watergate or King George During the American Revolution

Remember, every single Treasury and T-bill out there is utilized as collateral for millions of Dollars worth of trades. So if the big financial institutions begin to refuse to accept some US debt as collateral based on the perceived risk of a deb ceiling debacle there could quickly be capital call in the market similar to what happened when Lehman failed.

So are you going to be among the few, the proud, the surprised Sell Side analysts?

Or did I mean Plumper Woman?