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Stock World Weekly - Survivor's High
Here's the latest Stock World Weekly - Survivor's High
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“The MSM and the punditocracy may not be concerned with what’s going on, but I am. I think that we’re experiencing a sort of stock market survivor’s high, where investors are so relieved we didn’t crash that they’re ignoring the fact that there’s another cliff just ahead. Let’s make sure we have our disaster hedges in place and keep at least one hand on the emergency exit – just in case we don’t breeze over our levels.” - Phil
[...]
Arguably, the primary trigger for the spreading civil unrest in North Africa and the Middle East is inflation, particularly in the price of food. The recent inflation in food and energy prices was sparked in large part by the policy of quantitative easing being pursued by the Federal Reserve. According to plan, the Fed has pumped hundreds of billions of Dollars into the global economy. Populations already living on the edge were deeply affected by rapid price increases in staple goods. This stress, combined with long- simmering discontent, ignited open revolts in these regions.
James Grant, publisher of Grant’s Interest Rate Observer, spoke out against QE2 on March 16 in testimony before the U.S. House Committee on Financial Services. He shared his opinion that the Fed should “withdraw from the business of macroeconomic management” and “renounce debasement under the pseudoscientific name of ‘quantitative easing.’” Mr. Grant explores the history and philosophy behind the creation of the Federal Reserve, and how it has moved far beyond its original mission of being a “kind of balance wheel in the engine of the American money market.” Instead, it “has devoted itself to the black arts of central planning.” (Over to You, H. Parker Willis - James Grant)
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You don’t need a weatherman
To know which way the wind blows
No, but having a refuse dump nearby helps the reality to sink in better!
PEDAL TO THE METAL IN THE LEMMING MOBILE!
I like the call it the "Thelma and Louise government financing vehicle".
One should not concern oneself with matters over which one has no control. The Fed is like the weather, everyone complains about it but there is not a damn thing one can do about it.
All these things must pass.
The Federal Reserve is all the sin of humanity
wrapped into one Central Bank. When they've served their purpose
of showing mankind what happens when the globe turns
its back on the 'Golden Rule', the Fed and all its demons, devils and imps
will suffer the fate of Judas. Forever and ever, Amen.
The same thing could have been said about the Soviet Union, or chattel slavery, or the divine right of kings. Politics is the art of the possible --- and in politics, virtually ALL things are possible.
The caption on that drawing of running oil barrel should read : damn, I missed!
That would send the S&P up sky high.
robotTrader's mom is a raging ox so beware.
If you folks would just start with the premise that "The Fed" was created to be a benifit to none other than the monied elite you could cut through all the bullshit, unless of course you plan on reaching that status in the near future. I have seen corn converted to booze, fuel and flakes but I ain't seen sheep turn into (hold on a second.....had to adjust the rabbit ears on the TV) lions....yet.
Indeed, the very idea that a handful of men, meeting in secret, can arbitrarily set interest rates and decide the course of an entire nation's economy smacks of the worst sort of central planning hubris. Did the fall of the USSR teach us nothing?
The establishment and growth of such an elitist, economic central planning institution as the US Federal Reserve is the very antithesis of anything representative of a free market economy. Its existence is morally and intellectually repugnant to any advocate of a truly free society.
How can you have a free market when failing banks are given welfare to prop up their failing investments in failing companies and failed mortgage holders?
The free market died in 1913.
Why doesn't the FED tell the primary dealers to stay out of commodities and just buy paper?
Because the dealers are connected to the brokers. The brokers need the dealers to raise the captial to buy the commodities (metal, meat, grain, oil). As retarded as it is, the brokers are a necessary evil to the whole system. Unless they automated the process with a central system then it could work. But the brokers are there to act as a central hedge and haggle. The dealers doing the mark to market are only underwriting the whole thing.
That doesn't mean a dealer can't be a broker, or a broker can't be a dealer. It's rare that a dealer is a broker and supplier.
TYLER....
Didn't the courts say the FED had to release more data within 5 days?
TYLER....
Hasn't it been 6 days?
TYLER....
Where is that data? When should we expect it?
TYLER....
Talk to me buddy.