Tag Archives: Euro crisis

2 Cents Worth On Life Its Ownself

Let’s go right to work.  At these prices I can’t afford to spend time lingering….

All those that are surprised that Putin favors BO to win the election hold up your hands.  You do recall BO’s captured comments by the open mike when he told old Med that Vladimir should just be patient until the election and then BO would have more “flexibility dealing with Russia.  Of course Vladimir wants someone in the White House he can rollover.   In the meantime the Russkies don’t help with Iran or Syria or, well, where exactly are they being supportive?

Don’t take my scepticism for much weight regarding the whole issue of man-made global warming but you are encouraged to read the letter to the WSJ about three weeks ago on that topic.  We are constantly bombarded with the idea that the science is established that such a phenomenon exist.  That letter is by three very distinguished scientist and some at those elite Eastern schools.  They decry the lack of scientific purity in the research on the subject and posit that the subject has become captive to conclusions before data analysis.  Indeed the entire “green” movement has become its own industry.  The last thing they would want is for the world to solve the problem.  Then they would have nothing to do and frankly those cushy jobs with institutes, foundations and charities supporting the green agenda would disappear.  Their raison d’etre would be gone.

A footnote to the above topic.  You note that just in the last week the battle has begun over the huge solar panel projects planned for the deserts of the West.  That big project in California has already drawn opposition by three green groups talking about the environmental damage such a large solar array will have on the area.  Interestingly they also take the position that there is no evidence to support the notion that solar energy would improve the environment.  One of their arguments is that working the desert earth would release more methane and other harmful elements into the atmosphere than would be eliminated by the solar project.  These aren’t right-wing Tea Party types opposing the project.  Ah, ain’t watching the human play fascinating.  Wonder if we are in Act III yet.

We note that Biden has only given 2% of his income for charities.   Guess he couldn’t afford more with the expense of his hair transplants and all that dental and orthodontic work.

Bush was the epitome of evil for keeping all those poor terrorists in Gitmo but BO is still works on water and calms the seas even though he has followed the same policy for nigh on 4 years.  Don’t believe for a minute he needs some kind of Congressional approval for closing it down.  He is commander-in-chief and can order the military to do whatever he wants with those prisoners whether we like it or not.  He could release them tomorrow or send them to any other of our military bases around the world if he really wanted that.

Well, we have the announcement from Europe that the ECB will save the day a la our own Fed by printing up more Euros to support the Spanish, Italians, our Greek friends and assorted others.   They say they will do it in s “sterilized” fashion.  By that they mean that they won’t be printing more money and increasing the size of their balance sheet.  Allegedly they will sell other assets to make the new purchases.  But you let me know if you have seen an explanation of exactly how that will work and what assets they will redeem to buy the new bonds to support the Euro.  Those minor details have not been reported yet in the WSJ or Financial Times or any of the business news channels.  Conclusion–they are hiding the ball and will in fact just print more money.  After all if they didn’t then they wouldn’t accomplish what they view as they mission in this crisis.   Of course we hoi polloi just aren’t sophisticated enough to understand high finance right and they sure don’t want to trust us with plain language or simple truths.    I really believe that you could take an Italian or French politician and stick them into our Democrat party and you wouldn’t notice any change.

I am NOT a birther person.  Don’t hyperventilate.  But all that discussion did cause a new look at the Constitution.  Under the 20th amendment it would seem that if there is a serious question regarding the qualifications to be President and those are timely raised that an “elected” President would be denied his office and the Vice President would take the office at least until his qualifications were proved or removed.  Just read the amendment for yourself, it is pretty plain.   The presumptive President has to be “qualified” to assume office.

Just a word to the wise and those who want to make informed investment decisions–keep a constant eye on the Baltic Dry Index.  It monitors the shipping of hard goods and basic commodities.  Four years or so ago it was at 11,000, now it is at 675.  It is down over 60% just year to date.  Iron ore which is a fundamental item for all economies is down over 30% this year in shipments.  China ain’t buying much at all and has ample inventories.   Thus Australia is beginning to slow down significantly because it supplies the bulk of iron ore and coal to China.  No one else around the world is picking up the slack, not in South America or anywhere else.  Steel, lots of steel, is necessary for any thriving economy.  Until that Baltic Dry Index starts moving up big time the world economy will continue to languish.  All the other headlines are interesting and should be watched because monetary policy can help or screw things up badly, but bottom line you need that steel production to go up or we are just treading water at best.

You think Clint wasn’t a big hit at the Republican convention?  Well, the next week Smith and Wesson stock shot up about 15%.   He made their day.

“Newspapers nowadays use facts merely as the raw material of propaganda.   By suppression, or alteration, or overemphasis , or by the trick of false perspective, or by scare headlines and editorial comment, the “facts” are made to convey exactly the particular idea which the newspaper desires to suggest to its readers”.  P. Gibbs, English novelist, 1944.  http://www.olcranky.wordpress.com


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