Between morning and afternoon naps the old folks still have a thought or two that we offer at the same bargain prices…..
Well, helicopter Ben says he will print more money this morning from Jackson Hole. But, then again maybe he didn’t. You have to be able to translate the Greek from the ancient Hebrew and then into economic-ese. First the market took it as a yes, he would then folded upon further review. But upon even further review it decided he would print up some greenbacks for us. You make your own decision. My bet is that he will especially because his comments about the state of the economy and the unemployment rate were not optimistic at all. At least the Federal government has a debt ceiling limit it must adhere to but Ben has the sky for his limit, literally.
He made my day. Sure old Clint rambled a bit and was off message a lot. But he did make his points forcefully. The other side can have their Clooneys and Baldwins all they want. I’ll take Dirty Harry on my side in that dark alley of political knife fights any day. Clint looks like he could be your neighbor, not a pretty boy on a magazine cover.
Enjoy your Blue Moon Friday. A Blue Moon is when we have two full moons in one calender month. Hence the phrase once in a Blue Moon.
I don’t know how some of the economic pundits can still be debating about how much China is slowing down in its economic growth. You sure can’t trust the numbers out of China but there are some numbers you can follow that reflect what is happening there that are independent of the Chinese Commie Party influence. The actual shipments of iron ore have fallen more than 33% this year to China. Same is true of coking coal. This can be verified by following the numbers out of Australia and the Baltic Dry Index. Steel is one of those items that give a pretty clear indication of economic growth or activity. It goes into pretty much everything from cars to buildings to dish washers. Whatever they are doing behind the curtain in China that we don’t see, they are clearly doing less of it. For you investments you shouldn’t be counting on China for the near term.
There was a bit of talk about the Republican Convention authorizing a commission to study the idea of a gold standard fro our money. We should at least do that. The egg- head economists pooh pooh the idea as old -fashioned and not flexible enough for a “modern” economy. They always start off by pointing out that there isn’t enough gold to support the money needs. Well, that may be true but there are still ways of making a link between our money and gold. I have my own idea which is to set a standard that we must have enough gold to equal 50% of the national debt at all times based upon the average price of gold during the trailing twelve month period. At least that would make the politicians pay serious attention to our (your) debt. The way it is now there is no “governor” on the rise of the national debt other than the whims of the politicians of the moment. The government should also be required to accept gold at the market price as full payment and legal tender for all debts owed it. I am certainly open to tinkering with the concept offered here but anything like that would be a vast improvement unless you trust your future to the politicians and their desire to buy votes and voters in perpetuity.
A gold link with the dollar would prevent what we have seen the last three years where the Fed has simply printed dollars to by Treasury bills and thus allow the Feds to run a huge deficit each year. The Fed has bought over 50% of all the Treasuries during this period per their own reports and those of the Treasury. We wouldn’t have been able to finance our deficits because no one would have bought them or more realistically we would have had to pay much higher rates of interest. Keeping those interest rates low has been the stated purpose of the Fed.
You have to laugh when you notice that Tim Geithner the tax cheat and our Treasury Secretary has not been visible for some months now. The BO campaign clearly doesn’t want to have him with too much face time with the media now because he is a reminder of so much that has gone wrong with their policies. Think back to ’09 and ’10 and he was on the tube at least once a week. Maybe we should start a movement for people to watch out for a “Timmy” sighting.
In addition to worrying about the tons of smoke and other emissions that Man puts into our environment every day I will give you something else to worry about that the EPA is completely ignoring and offering us no protection or solutions. Every single day thousands of tons of debris from space falls to earth. You see them in the falling stars and meteorites but there are many more that we never see. Just think no one is protecting us from this pollution and we don’t even know all the evil elements that are in these celestial contaminants. This is all in addition to that deadly radiation from the Sun. One wonders how we made it from the trees and caves to our condos.
Go Curiousity. It has started moving and exploring. Can’t wait to see if we learn something really new or its just a dusty place with boring geography and elements.
“Only in states in which the power of the people is supreme has liberty any abode.” Cicero. Good words and a warning. http://www.olcranky.wordpress.com