Benny Drops the Big One!

ilene's picture

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Cpl Hicks's picture

Ms Ilene,

What's the report from the Streets of France? Was that righteous revolt against the PTB successful?

Remember that? Last week? You were all rising up angry, street fighting man mad.

You found something new to jerk off about? Oh, never mind.

Buck Johnson's picture

Bernanke is throwing a hailmary pass and hopeing this can kick start the economy without causing hyperinflation.

Panafrican Funktron Robot's picture

In spite of all this, I think the dollar trade weighted index hits 88-90 by the end of 1Q 2011.  Benny is fighting a battle he can't win.  Euro in the 1.15-1.18 range is a near certainty.

Winston Smith 2009's picture

http://en.wikipedia.org/wiki/Currency_war

Excerpt:

The Telegraph said while countries that have mostly trade surpluses with the United States were all trying to devalue their currencies—China, Japan, Korea, Thailand, and Switzerland, amongst others—the US was starting to retaliate with such measuers as the Reform for Fair Trade Act. It then said:

The atomic bomb, of course, is quantitative easing by the Federal Reserve. America has in effect issued an ultimatum to China and G20: either you stop this predatory behaviour and agree to some formula for global rebalancing, or we will deploy QE2 `a l’outrance’ to flood your economies with excess liquidity. We will cause you to overheat and drive up your wage costs. We will impose a de facto currency revaluation by more brutal and disruptive means, and there is little you can do to stop it. Pick your poison.

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Last one to the bottom is the "winner." Har.

StychoKiller's picture

Just about the only analysis I've seen that explains the Fed's actions!  What's a Chinese Govt to do?  Pull the trigger, blow out their brains by selling their Treasuries?  Throw in the towel and re-value their currency?  Someone get some Chinese tea leaves readers in here, stat!

Cpl Hicks's picture

Hey Phil, you should have a disclaimer at the bottom of all your posts- something along the lines of:

This self-promotional piece is for advertising purposes only and should not be considered serious advice and/or analysis.

ebworthen's picture

Yes, my Bacon/Coffee inflation indicator has gone crazy in the past 6 months.

Notice that Dominoes and Pizza Hut are LOWERING the price of their pizza - it is something you can make on your own, buy a take and bake, or do without.

 

Bob's picture

Fantastic piece, Phil! 

Please keep 'em coming. 

BigJim's picture

But otherwise (how the investor class are making out like bandits at the expense of J6P who has no idea what's going on, or what to do about it) I'd say you're on the money.

BigJim's picture

"Think of how fantastic this is for our Multi-Nationals - who collect international currencies as payments and get to pay their US labor force in (ROFL) American money!  To foreign corporations, this is like paying their American workers in beads and trinkets...   "

How are they earning this foreign currency? Presumably by employing foreign workers... and as they're paying them in the local currencies, it balances out, no?

Just as when (remember?) the US$ was strong, US multinationals weren't making any more of a killing because they could pay foreign workers with US$ - because to have earnt those US$, they had to employ US workers.

Joe44oz's picture

And the number one news article on Yahoo today? ..... The McRib is back!

McRib Locator

I pity the fool who lives in Montana.

Cpl Hicks's picture

News in from San Fran in the great State of California. They have banned McD's happy meal.

There, there...don't you feel better now?

Betty Swallsack's picture

Holy Mis-reporting, Batman!  Get yer facts straight.

Fast food giant McDonald's says it is "extremely disappointed" by a decision by San Francisco authorities to put the kibosh on Happy Meals and impose a ban on giving away toys with kids' meals that don't meet certain nutritional standards.

Under the ruling, scheduled to take effect in December 2011, San Francisco restaurants will be allowed to include a toy with a meal only if the food and drink in the meal contain fewer than 600 calories, less than 640 milligrams of sodium and if less than 35 per cent of the calories are derived from fat (less than 10 per cent from saturated fat), except for fat contained in nuts, seeds, eggs or low-fat cheese.

Cpl Hicks's picture

Oh, well that changes everything.

Seriously, what thay have done is created a niche market for somebody to sell a Nut, Cheese, Egg Patty on a Special Sauce, Sesame Seed Bun .....sandwich.

It's all academic (as most lefty issues are) seeing as how there ain't no kids in San Francisco anyway.

Fish Gone Bad's picture

I just love the McRib sandwiches. 

Joe44oz's picture

With the price of pork up 60%.... can you still afford one?

Winston Smith 2009's picture

You actually think there's pork in a McRib? ;-)

Betty Swallsack's picture

(gasp!) Nor is there any sign that there was actually a rib in a McRib!

russki standart's picture

What makes you think that the McRib is made from Pork?