Friday, March 25, 2011

BEYOND INSANITY

UP UP AND AWAY this measure of money supply has NEVER BEFORE in HISTORY seen this kind of move.....BEYOND INSANITY.....this was FIAT that never existed before this....where will it end? THE REAL insanity is the horse is not drinking.....

Read what you want, believe what you want, the stock market IS NOT the economy nor does it reflect the economy, if it did, it would be half its current price level, IMHO.

In the 50 years it has kept track of housing data, new home sales NEVER released data poorer than this weeks report and this is after 2 PLUS years of 0% ZIRP....all the incentives......2 PLUS years of supposed recovery.......you would expect SLOW CONSTANT rise in this data not a FALL TO NEW LOWS!!!

What then interests the stock market? there are ALL kinds of companies in it, so we know commodity based and energy based companies are flying. We know most banks mistate earnings because of suspension of mark to market accounting, because home values continue to drop....we know we have RECORD amount of Americans on gov't assistance.....there are many troubling signs.....as CORE INFLATION really heats up.....

We know the unemployment data is cooked and does not reflect the actual situation....there is little real hiring going on...without HOUSING contributing to economy....we already see DURABLE GOODS peaking and now declining and there are a lot less people buying homes and and all that conncected action of things you would purchase, people you would hire is just not there....so YOU tell me....what IS driving this economy?

IN A WORD IT IS THE FED and CB policy around the world....except some have begun to tighten.....some talk of cutting back.....that leaves the US CB'ers, our FED to goose the world economy...and in some SICK deveiant reaction the world is counting on QE3 and beyind like it will never end and this is a good thing, that theses FED policies lead to recovery and prosperity.


"Spend Our Way To Prosperity"

" In his State of the Union Address, President Obama spoke briefly about cutting the deficit but gave far more attention to ambitious new spending programs to revive the economy. He still hasn’t accepted a common sense notion most Americans understand: you can’t borrow and spend your way to prosperity. Even if deficits were reduced, every new dollar of government expenditure takes money for the public sector out of the private, for-profit economy. Spending for roads, bridges and other useful infrastructure--let alone "investment" in scams like high speed rail and solar power-- still means increased burdens on taxpayers and less money for business to expand and to create long-term jobs. The key question before the country is whether to continue growing government and imposing new burdens on the private economy, or reducing the cost of government and giving business the chance to breathe and grow."

This morning we get another GDP revision, but it really doesn't matter.....blowing BUBBLES is our main policy and until we demand different that's what it will be be....we will go from BOOM to BUST.....this time the BOOM is only felt by those involved in stocks......mainly the insiders.........majority of people have their lives invested in their HOMES, not in stocks......and I have proven how little effectiveness current policies have proven to improve that situation...in the meantime current policies are proving VERY DESTRUCTIVE and especially to those looking for interest income....NEVER A GOOD IDEA to have a unbalanced economy....

Investment in gold and energy has proven a wise strategy for now.....

Duratek

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