Saturday, January 28, 2012


" And forgive me one last time for thinking that the invincible hand of the Federal Reserve – along with unfathomable global central bank liquidity creation – further bolsters boom and bust dynamics and heightens the risk of further rounds of global de-leveraging and de-risking. If it looks like a Bubble, smells like a Bubble…"

The announcement by the Federal Reserve to keep interest rates at the lowest levels since the Great Depression, basically at 0% to Banks, keeps the "risk on" trade flowing. Did anyone notice the subsequent thrashing the US $ got this week? falling to neat 78.00 from above 80.00 in the index....and GOLD caught a bid back above $1,700 an ounce! who said the gold bull was dead?

2.8 US GDP would have been higher had not State and Local governments not tightened their belts. Locally here in MD some of the Defense Contracting firms have been laying off workers....The budget for Defence spending for 2012 is somewhere near $600B, larger than all countries in the world combined....what cutback?

Local State Govt's work on passing new measures to TAX MORE, so they can bridge their budget deficit gaps, the US GOVT does not have to worry about such things.....I mean we're not Greece for goodness sakes. (see how my language has moderated? WTF????) The cool thing is, the US has the world's reserve currency, and that's our trump card......ramp up the printing...deficits don't matter.

Now, as I go around in my daily meanderings, I talked to a service tech writer at a local Toyota dealership and she hasn't had a wage increase in 3 years. Our Govenor is forced to RAISE TAXES to cover the state will be the gas tax..oh boy, that certainly hits the rich in the mouth....not

More states want to tax internet sales, in 1992 the US SUpreme COurt upheld states cannot tax companies that do not have physical pressence in the state they do come the lawsuits.

Hey did you hear Obama wants to go more green? Create more jobs in alternative energy? wasn't that a campaign promise 3 years ago? That's what ALL politicians are good at, promising stuff.....

Finally Obama made a stand and made public the fact that it isn't fair for politicians to trade on INSIDER INFO....I'd sign a bill on my desk today....did he get one?

Dem's suck, Repub's suck, and no one is voting Ron Paul's that "AUDIT THE FED" GOING?

WHat's an avg investor to do? Can't get ANY return on safe savings, about only thing left is the stock market of which they still seem to shun in droves.


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