Wednesday morning, and fresh off another PPT “Hail Mary” rally yesterday to support the key ROUND NUMBER 12,000. Yet again, European markets (and Dow Futures) were down all night, until magically the Dow started rising just before the NYSE open.
Yesterday, the ONLY news I saw was further fanning of the Italian economic conflagration…
But don’t worry, as long as the PPT is on the case, the Dow can indefinitely rise against all fundamentals (for now)…
Back to today, a carbon copy of yesterday, only worse!
I walked into the gym at 7 am EST to see Dow Futures down 70 points, to just above 12,000, only to rally THREE SEPARATE TIMES from that level. As always, the news ACROSS THE BOARD was terrible, signifying, if anything, accelerating declines in GLOBAL economic conditions.
First in Japan, where 22 years of recession appears likely to become 30+ years. Not only is their economy mired in unending decline and nuclear winter, but despite the highest debt/GDP ratio on earth, the Yen is the world’s STRONGEST CURRENCY. The $50 billion intervention of just two weeks ago has already failed, with the Yen/Dollar again approaching its ALL-TIME HIGH.
The BOJ has lost close to $600 billion of freshly printed money THIS YEAR ALONE trying to weaken the Yen, but it continues to rise due to its favorable trade balance with the dying United States. Consequently, its largest companies are losing market share, and thus considering….if you can believe this…moving operations to CHINA to become more competitive. Such actions will further increase Japanese unemployment, yielding reduced consumer spending in the world’s third largest economy, and further strengthening of China’s grip on global manufacturing.
Meanwhile, the Bank of England is preparing for additional, OVERT Quantitative Easing, just ONE MONTH after announcing its last round. England has some of the highest inflation rates in the Western world (I know, I was just there), yet its government has the GALL to claim inflation is non-existent! What on earth could all those people have been rioting about?
Heck, if the U.S. can report ZERO inflation with gasoline prices just $0.25 or so from their multi-year highs…
…and ready to EXPLODE higher, I guess anyone can.
However, when the government’s goal is to create public PERCEPTION that QE3 is DESPERATELY NEEDED, the CPI-fudging mechanism goes into hyperdrive…
Over in Europe, the ECB again repurchased Italian bonds this morning, pushing yields below 7% until the shocking revelation that Unicredit, BY FAR Italy’s largest bank, is nearing bankruptcy.
And whattya know, Italian bond yields are back up above 7% (comical, isn’t it?)
Of course, it doesn’t take a rocket scientist to realize Unicredit is a goner, given that it, as well as the second and third largest banks in Italy, are ALL penny stocks!
Thrown in an expanding LIBOR funding crisis, headed rapidly toward the late 2008 crisis levels…
… and one wonders how well this year’s 104 remaining European bond and bill auctions will go, particularly those conducted during the thinly-traded holiday season. Can you say ECB HYPERINFLATION?
Here in the United States of Corruption, I see the Post Office is running out of money, YET AGAIN. I have no beef with postal workers, but let’s face it, mail service is as obsolete as the Pony Express and Buggy Whip. Nearly all my bills and personal correspondences are sent ONLINE, and anything important is mailed by COURIER SERVICE, such as UPS and Fed-Ex. I’d estimate 97% of my mail gets thrown out as SPAM, three-quarters of which are credit card applications and advertising circulars, ALL of which are available ONLINE.
If the USPS was a rational business, it would be shuttered except for courier service, or at the most limited to once-a-week delivery. However, not in the United States of Bureaucracy and Welfare, as the post office’s 671,000 employees cannot be laid off, lest food riots would commence immediately. Think about it, readers; the U.S. population is roughly 300 million people, of which roughly 57% are employed at rates above the minimum wage, or 170 million people. Thus, the Post Office represents approximately 0.5% of the labor force, or one in every 200 working Americans. Quite a luxury for a bankrupt nation, as post office work ranks as one of the highest paying vocations, compared to skill set complexity, in the world.
Meanwhile, the U.S. debt will probably have passed $15.0 TRILLION by the time you read this, and just a WEEK from today the bickering “SuperCommittee” is charged with coming up with $1.5 Trillion of budget cuts, so that the debt ceiling can be raised to $16.4 TRILLION by year-end. Don’t be surprised to see YET ANOTHER debt ceiling debacle next week, just in time for Thanksgiving.
But don’t worry, as long as the Cartel can hit gold by $20/oz. at EXACTLY the opening of the PAPER COMEX market, “all’s well.” And I kid you not, for the past hour the PPT has been holding the Dow within 10 points of 12,000, YET AGAIN!
Finally, my topic of the day, the “Occupy Wall Street” movement, which seems to be misunderstood by so many. Yesterday afternoon, I drove into downtown Denver to observe “Occupy Denver,” operating simultaneously with “OWS” for many weeks now. I had no interest in participating, as my stand against oppressive fascism is taken in these missives, but I did want to see how others were taking their stands.
Unfortunately, the turnout was low due to weekend violence that caused multiple arrests, but irrespective a small group was present. I would not rank this group as either intimidating or effective, but nevertheless they remained. The only telling evidence of genuine public disapproval of “the system” was a group of people standing with “anti-Fed” signs by the Street to a cacophony of approving car horns. Otherwise, a major disappointment.
As I watched for roughly a half-hour, I thought of the PROPAGANDA seeking to sell short (pardon the pun) the OWS movement, as if has no meaning. Sure, there are numerous homeless and hangers-on seeking a party, or a meal, but nonetheless the movement continues, not just in high-profile cities like New York, but 900 lesser cities throughout the world. OWS is unlikely to ACHIEVE anything, but it REPRESENTS something important, the ANGER of the 99% of people who are losing, while the 1%, whom largely caused the world’s problems, are winning.
They are ANGRY at filth like John Corzine, the only man to have completed the “triple crown of slime,” i.e. State Governor, U.S. Senator, and CEO of Goldman Sachs. In ALL THREE POSITIONS, Corzine was responsible for profiteering at the expense of the masses, even sinking so low as to use Chris Christie’s weight as a talking point in the 2009 NJ gubernatorial race, and had the GALL to gregariously speak at a high-end banking dinner the evening before MF Global collapsed.
Once again, a video tells a thousand words, and it is hard to beat this one from Jon Stewart when describing how low a human being John Corzine is, if that description is even applicable. I didn’t think it possible that the award for most vile Goldman CEO of all time would NOT go to Lloyd Blankfein or Hank Paulson, but I present to you John Corzine…
|Jon Stewart makes MINCEMEAT out of Jon CORZINE|
Congratulations New Jersey, you know have one of the poorest states in America!
Not just those attending OWS rallies, but “the 99%” in general, are ANGRY at criminal organizations like JP Morgan, blindly STEALING from:
and sovereign nations…
…while CONTINUING to create new, SATANIC ways of DESTROYING capital…
They are ANGRY at rising unemployment rates and Wall Street bonuses; inflation; lobbyists; the legality of insider trading for Congressman; and a thousand other inequities that were always PRESENT, but not until now FELT.
Global competition, easy monetary policy, government graft, and corporate corruption has destroyed the fabric of America, resulting in a hollow, indebted shell with surging inflation, unemployment, and unrest. “The 1%” have commandeered what’s left of the nation’s resources, and as a result “the 99%” are ANGRY.
The next stage of ANGER will be far less benign than OWS, expanding at a rate equal to growth in the aforementioned ills. And when it occurs, if you have not PROTECTED YOURSELF, it will become A LOT more difficult, if not impossible.
On a lighter note, how apropos that Triumph the Insult Comic Dog attended OWS last week!