Updated Macro Observations From Strategic Alpha

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Fri, 03/04/2011 - 08:46 | 1017975 Turd Ferguson
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"This NFP will not influence Bernanke as it is not about data now, it is about funding the deficit"

100% spot on.


Fri, 03/04/2011 - 09:06 | 1018010 FilthyLucre
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For once Bernake was telling the truth when he said there isn't enough gold to return to a gold standard. He knows how many Benny bucks exist and how many more he is going to print. Whats one hundred thousand bazillion gagillion bucks (rounded up to the nearest infinity) divided by all the US's gold (rounded down to whats actually at Ft Knox). Infinity/0 doesn't work so well.

Fri, 03/04/2011 - 09:47 | 1018129 f16hoser
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Any number devided by infinity = zero. We're doomed......

Think congress will tax the free lunch lines????????

Fri, 03/04/2011 - 09:47 | 1018135 Sophist Economicus
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You know, when I hear B say that about gold I couldn't believe it!  

Geez, one ounce of gold is sufficient at a high enough price to fiat!   The scary thing is that from his expressions, it looked like he really believes that gold at $1400 is accurate and that the math doesn't compute.   I walked away thinking, "this guy isn't evil, he's just arrogant!   He really believes this is true."   Unfortunately for most, the impact of his actions are the same

Fri, 03/04/2011 - 14:26 | 1019264 cranky-old-geezer
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For once Bernake was telling the truth when he said there isn't enough gold to return to a gold standard.

No, he's LYING again.

There's PLENTY of gold to return to a gold standard.

He knows the problem is the exchange rate. 

Anyone wana guess?  $87,000 per ounce?  $123,000 per ounce? 

He'd have to pull TRILLIONS of FRNs out of the system to get the exchange rate down anywhere near today's spot price.

THAT'S why he doesn't want the Fed audited.  He's scared shitless people would find about the HUNDREDS of TRILLIONS of dollars he's created and given to cronies secretly.

Fri, 03/04/2011 - 09:09 | 1018013 Larry Darrell
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+ 1

And this is the reason everyone in every stock or commodity will continue to BTFD.

 

With real interest rates negative until this thing finally blows apart, there is no other option if you want to preserve any purchasing power.

Fri, 03/04/2011 - 08:51 | 1017983 johnQpublic
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with the fed being the largest holder of our debt, why dont they just cancel or forgive that debt?

they can print more debt later after all...

Fri, 03/04/2011 - 09:21 | 1017986 falak pema
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As somebody pointed out the Spain/Portugal real estate bubble is now toast. Forget it. The EU will do its share. The Mafias of the world and the EU banks who helped launder refunneling this money in will have to take a mega hair cut. The issue of the euro currency is no longer economic but now political in the intergalactic currency war now raging thanks to QE-2. The middle east and chinese/japanese oligarchies heavily support the Euro for political reasons to oblige the USD to be shelved as reserve currency. It is in their long term interests. WIll they succeed is the issue of this currency war shooting match. The BCE is playing it on both sides. Supporting the FED Ponzi and alleviating the EM demands for outsourcing surpluses into nationally denominated but ECB supported euro bonds, even if they are overdiluted by PIGS sovereign debt.

There are two linch pins to this ticking monetary grenade :

a) Merkel/German panicking to pull the plug on the ECB's Ponzi. But if she does she kill's Germany's MAIN export market : Europe. Current deadline for this reappraisal is 2013. But in reality it will occur much earlier as the events are now in ME fed crisis mode.

b) The USD starts collapsing under strain of QE running out of steam and the prime dealers/hedge funds moving massively out of stocks into bonds/PM commodities. In this case the FED throws in the towel and the asset correction and the Great Depression occurs. US GDP falls by 30% like in EU. It could tank the world economic system. The Chinese and the US would like this to happen five years down the road, for different reasons. But the current ME spiral and its unknown but very toxic fall-out looks like it will make it unravel faster then later.

 

Life jackets everyone!

Fri, 03/04/2011 - 08:57 | 1017990 John Law Lives
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Washington DC has no collective will to cut spending.  The Ben Bernank is a good little puppet who accommodates Washington DC.  Print money and spend it and rack up more debt and create inflation.  What a vicious cycle.

Fri, 03/04/2011 - 09:02 | 1017997 westboundnup
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When the market surged mid-week, I saw a CNBC commentator on the floor of the exchange stating neither he nor any of his colleagues had any idea why it was occuring given that the price of oil remained high, no significant positive economic indicators, etc.  What was jarring to me is that it was clear that he was lying by just looking at him.  Clearly he knew what was driving the market, but feigned ignorance.  While some may find it a pretty basic assumption that financial commentators engage in spin, it is disconcerting to see it occur live and with such little effort at masking.

Fri, 03/04/2011 - 09:03 | 1018005 Sophist Economicus
Sophist Economicus's picture

It is amazing to me how Trichet can play these FX guys like a fiddle.   He is screwed.  Jawboning is his only weapon.   The energy wasted on this crap because of the world's defective monetary system is incredible

Fri, 03/04/2011 - 09:13 | 1018017 Robslob
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what is to be derived from the observation is the point...

these guys are seeing their living disappear before their eyes...no one will ever again invest in what they sell for the balance of their lifetimes...that was the look you saw...finally realizing what you do brings no value AND having it exposed...Priceless

Fri, 03/04/2011 - 09:14 | 1018020 Monday1929
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Unless he is a sociopath, How does bernanke sleep at night?

Fri, 03/04/2011 - 13:00 | 1019097 dizzyfingers
dizzyfingers's picture

You answered your own question - he IS a sociopath. They're everywhere.

 

 

Fri, 03/04/2011 - 09:16 | 1018025 overmedicatedun...
overmedicatedundersexed's picture

the economy is improving UE is dropping about time for Harry to jump in with exploding home decorations sales and new business contacts who are hitting decade high sales.. Harry, Harry?

Fri, 03/04/2011 - 09:16 | 1018026 Johnny Lawrence
Johnny Lawrence's picture

Who are these people?

 

“The labor market has passed an important threshold and is starting to create a good number of jobs,” said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. “It’s partly a snow-related rebound, but I think there’s some real substance there. We’re looking for jobs to run 200,000 plus in coming months as the recovery reaches the self- sustainable stage.”

Fri, 03/04/2011 - 09:28 | 1018047 falak pema
falak pema's picture

Men from mars, sons of ET, mission controlled aliens subcontracted by FED to support the myth of asset market's levitation. There is so much liquidity around and so few real places to invest it. It's velocity into temporary labour creation is awesome. But will it last?...ask Hamlet...is he in his usual mood...has he seen the Ghost yet?

Fri, 03/04/2011 - 09:39 | 1018079 Josh Randall
Josh Randall's picture

On the Euro and bailouts - What will Merkel do now that she and her party are getting their lunch handed to them by the German Voters? If Ireland kicks the bankers and their phony debt in the crotch, then the Euro will be on an express elevator to hell going down fast.

Merkel yelling "Euro Akbar" while she runs throwing money down a rat hole wont leave her a legacy of anything other than of a complete failure.

 

Should make for some interesting couple of weeks in Euro Disney Land

Mon, 03/07/2011 - 20:41 | 1028073 lsjcma
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