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Welcome To The Confidenceless, Stagflationary, Recoverlyess Recovery: Consumer Confidence Plunges
The Confidence Board has released its Consumer Confidence Number, which in March went in freefall from the revised previous print of 72, highest in 3 years, to a below consensus 63.4 (expectations of 65). But while this number is largely irrelevant, the Inflation Rate index surged from 5.5 to 6.7, the highest since October 2008.
The chart below of inflationary expectations shows why Bernanke is in a bind: QE3 means this line will go parabolic; no QE3 means the market will go inversely parabolic. Pick your poison.
And longer-term. There has been a market crash after every historic surge.
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ah, you have finally figured this one out RT....ben will be over to stuff $$ into your pockets. he will also stuff $$ into everyone else in the country (world) pockets also. therein lies the problem...everyone will have pockets full of dollars and when you go to the store to buy a gallon of milk, it will cost you that pocket full $$ of fresh "benny bucks" plus every other pocket full of $$ you and your family owns just to purchase that one item.
see, isn't that simple.
The Abbott chart resembles a carbuncle. This issue, I assure you, is a value trap. Indeed, a prime short, were it ever to reach 50.
I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. - Thomas Jefferson
Inflate and deflate into the greatest theft in history....Have to respect a man who can see so clearly into the future
If someone gave you a couple of billion a day/week to "spread around" there is only so much passive investment you can do without dumping your money into stocks.
Rumpelstiltskin. Its like the old spinning wheel that spins straw into gold.
After slaking your money lust on mortgage bailouts and POMO, all you can do is vote NFLX.
Now we need to re-read The Road to Roota.
...the door to the Fed's dark closet may shed a crack of light on this criminal institution.
http://www.bootcampbloggers.com/?p=5672
The worse the news gets the higher the market goes. Waiting in the wings, QE3,4,5 to infinity. These markets are a fucking joke as are the morons that are manipulating them.
Judging by this level of all-out totally transparent fraud and manipulation, the next step is gonna be a doozie! Like that dream you have where youre walking along looking up at the stars and suddenly step off the top of the Empire State building.
.
http://www.youtube.com/watch?v=kVdVTVR-j0Q
Forward, comrade bureaucrats!
I believe theyre doing this in your face daily trying to get people to revolt so it gives them an excuse to pull the rug out.
See, THEY wont ever end this, it will be 'We had everything under control, everything going just fine until YOU PEOPLE screwed it all up and rioted, then our only choice was to shut it all down and impose martial law on you and seize your funds since you created a national emergency'.
Theyll never admit theyre criminals, ever!
Just my honest conclusion.
Dog,
The criminal syndicate known as Wall Street will be net sellers until the debt ceiling issue is cleared...or emerges...whichever the case. While I have no idea whether or not it will be raised on time, I do know that the syndicate will use the drama [born of political posturing] to create volatility...so that they can arbitrage to death all the things on the surface of the planet...in preparation for then next bonus distribution.
Near term profit will be in the --gasp-- downside.
Theyre just keeping the wheels on until Iran formally enters WW3 which is boiling over right now, and suddenly all of it will be irrelevant. Throw in a few domestic 'terror attacks' in order to just shut everything down, nation at panic, sheeple running around dying for a can of tuna...those debt ceilings and treasury issuances will be long forgotten.
I agree something will happen that will make us forget all about the corruption in our markets/banking. This is and has been the plan.. TPTB cannot be blamed for what they caused.. It's too easy for them to false flag their way out of it..
Should Americans buy houses with stocks?
It's just taking things to their logical conclusion. If Congress gets behind it you can start packing and move in to your new McMansion. The banks could then de-securitize those securities by turning them into reverse mortgages, chopped and packaged for sale to pensions, charities, widow and orphan funds and foreign municipal governments. Derivatives would arb the risk. That would be a win-win-win-win-win-win
Wanna know why states and cities are going broke?
I snapped these two pictures today of 3 workers at an LIRR train station. One guy was working on removing a piece of plywood from a platform while the other two men stood with horns facing opposite directions of the track adjacent to the worker in the middle. So these two workers make an average of 48k not counting overtime nor additional pension/health benefits to honk their foghorn to alert the man who is not even working on the track if the trains are coming.
Meanwhile the train itself blows the horn numerous times while approaching the station. This is what is bankrupting us.
http://img5.imageshack.us/g/mtar.jpg/
Sure, that must be the reason.
Well, this is part of it. My favorite is the pothole fillers in Atlanta. There's literally one guy working and 7-10 standing around doing nothing. It's hilarious that they rub it in everyone's face instead of keeping the guys at the office under desks.
nassau and suffolk county workers are nothing but lard asses. Their density actualy bends the fabric of space and time, sucking in all money.
yeah sure, that's the problem. that's why America is going broke. Its not the endless wars. It's not the criminals on Wall Street. It's not the banks milking you for every possible cent. It's not the usury fees we pay on credit cards. It's not the corporations off-shoring their profits to avoid paying US income taxes. It's not the off-shoring of jobs in order to replace the $15 per hour worker with the .15 per hour worker. It's not the collapsing home values. It's not the 20% unemployment. It's not the inflation rate. It's not the falling income of the middle class. It's not the wealth gap. No...it is not these things that are bankrupting the nation...it's the 48k per year railroad worker. Brilliant. You should run for public office with a mind like that.
Thanks, couldn't have said it better myself!
Alien,
You are correct in why America is going broke.
He stated why the States and Cities are going broke.
You might recall that in the former Soviet Union they put lots of little old ladies with brooms to work sweeping the streets rather than buying streetsweeping trucks. I imagine those little old ladies got some kind of stipend that bought them some sort of room and board and other necessities.
Many years ago, I worked for a municipality. (That is not an oxymoron). I was on a committee tasked to find ways to be more efficient. I got access to data which allowed me to compute my true cost to the citizenry of said municipality.
Lo and behold, whilst on the job site one day, I was accosted by a resident who was less than appreciative of the efforts expended on behalf of the local infrastructure. He capped off his tirade with the very line I had been waiting for - "I pay your salary!".
I was highly pleased to be able to inform the citizen that I had computed the cost of my employment divided by the number of citizens, and that I cost each resident exactly twenty five cents per annum. I offered to repay his investment on the condition that he leave me alone. Surprisingly, he neither took the proffered quarter nor called in to report my attitude.
Interesting, yet you provide only half the story: Multiply that 25 cents by the number of public employees of said municipality, then get back to us.
Ugh , have the S&P E-mini on my screen and unless my eyes are decieving me it just had a fairly large spike higher on that dismal Consumer Confidence reading . These markets would drive a sane man beserk .
and gas goes back to $4.00 in a repeat of the original experiment to determine where the back of the economy is broken.
Why not remove "consumer" from the CONfidence rating?
The Bernank has proven the consumer irrelevant.
How can the f****** FED say, or have said in the recent past, that inflation expectations are well anchored??? They have simply been BS us with their "Fedspeak"...........they are complete idiots!!
So if I were to say....be long PM, what type of SP500 put option would I want to put on as a hedge of sorts. June?
But Wall Street is "confident". Stocks are higher!
Them pesky "Green Shoots"....again.
Another POMO, another BTFD, another day closer to FED closing down. Say goodbye to reserve curency.
I didn't agree with you on RC Forums, but I have to agree here.
I am not generally sure about anything, and I do not know if you have mixed me up with someone else, but It looks more and more likely that the dollar has had it. Every Ponzi comes to the end, and this one is overdue.
fully expect inflation to run ahead of short term treasury paper, but if they can keep both nominally low, 5% inflation, 3.5% on a 2yr, the public won't revolt, (even though that premium is huge in percentage terms). Higher interest rates and lower commodity prices, the system tends to balance itself. The president will say two magic words on his way to relection, natural gas. nat gas to run cars, make electricty, there's a great deal of the stuff all domestic energy. (Let the rest of the world worry about oil). In order to keep food here in this country expect taxes on exports, a reverse subsidy, higher prices for foreigners, subsidies for food processed domestically) Obama is there with the GOP nativitsts. Expect a new isolationism, protectionism, and stricter immigration. Meanwhile we engineer financial alchemy, and stability in the dollar. The next hundred years could be better economically, weaker socially and culturally, and less globalism, trade and expensive bombing expeditions over thrid world problems like Libya. Remember this countyry was great when we had a vertical economy, we mined the iron ore, we made the steel, we built the cars we drove. simple enough.
I just placed my first put in over four months. That should help propel the market up by few hundred handles.
The entire stock market is a share(d) hallucination - at some point every hallucination dissolves and only reality is left. This cannot end well. A constant balancing act between manipulating the markets into false territory and manipulating people's perception that what they see is beleivable and functioning normally, is mutually exclusive and at some point one of these two manipulations fails.
Worship the power of the Federal Reserve!
The All Seeing Eye, knows all, sees all!
As good and loyal servants of the Federal Reserve, we should take the existing federal reserve notes that we currently have, and then exchange them for shares of a major stock index, such as the Nasdaq, S & P, or Dow, for example. We could even get more daring, and buy an individual stock, like GE, or maybe even Exxon Mobile, for example. Then, later on that day, week, month, or even year, we could then exchange those shares for more federal reserve notes to help us, as well as others by being able to share those notes with them for goods, and services. This, my friend, is how we can follow the Federal Reserve, and be loyal servants to the Federal Reserve’s demands.
Worship the power of the Federal Reserve!
The All Seeing Eye, knows all, sees all!
We mustn't fight the Federal Reserve!
We mustn't fight the Federal Reserve!
We should all obey the Federal Reserve!
We should all obey the Federal Reserve!
We are not to fight the Federal Reserve!
We are to obey its demands!
Thou shalt not go short!
Thou shalt buy stocks!
"Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some. – As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery." - John Maynard Keynes
We can be part of the solution to the overreaching authorities. Please visit the Zero Hedge forums and check out this idea to stop the traffic cameras in your area.
http://www.zerohedge.com/forum/disable-traffic-cameras-perfection-does-not-exist
Don't post much but thought I would share some food inflation data. Prices have flown to the sky in the last week.
12 oz. Dunkin Donuts coffee: was $8.99 now $10.19
8 oz. store brand cream cheese: was $1.49 now $2.09
1 gallon of generic milk: was $1.79 now $2.19
Easter candy used to be 16 oz., then it went to 14 oz., 12 oz., and this year it is 10 oz. bags. Instead of 3/$5 the "sale" is 3/$8.
Miracle Whip: was $1.99 on sale, $3.49 regular; now $2.99 on sale, $4.59 regular
1 pound store brand frozen veg: was .99 now $1.29
Was looking to get ingredients to make an old '70s era dessert w/instant pudding and Cool Whip for my brother's birthday. Added up to around $12. Put it all back and just bought a pie from a restaurant. It was $2.50 more, but also made with real whip cream and way better.
Yet a dollar is stil 100 cents. On the other hand a silver dollar ought to be worth around 27 paper dollars. But you can't eat silver, on the other hand you can eat paper but it has no nutritional value.
Stock up on booze and silver and the necessities will take care of themselves as pappy used to say.
I'd rather take the antidote, Glass-Steagall
The consumer is dead, long live QEeeeeeeee.