Ding Dong ! The Wicked Witch is Dead!

[The Virginian]

Just announced that Little Timmy "Tax Cheat" Geithner is resigning!!!!!

[Virgil Showlion]

...in 11 months. And I wouldn't bank on Pres. Obama (or Pres. Romney, more likely) to appoint anyone better.

Bigger news today is Bernanke's QE 2.5 announcement.

The announcement was given at... well... figure it out:



Dow 36,000 ho-oooooh!

[The Virginian]

I read an article that indicated Europe was also sort of secretly going through a QE and that's what has been driving the Market up this month.

DOW 36,000 ? I'll be happy with 14,000.

[jarhead1976]

Yeah , no kidding Virgil.

[ModE98]

Well, I'll be dinged, or should I be donged? Believe it was enevitable. We shall see who the next Tresuary Guru will be in the fullness of time. Do not be too pessamistic, there is always "hope" the new Czar will not be too inept. ;D

[The Virginian]

Would anyone like to take Bets that the new one will also be from Goldman Sachs?

[tyfighter3]

Larry Summers?

[The Virginian]

Maybe we can dig Alexander Hamilton up and prop him up in a corner, couldn't do much worse!

[tyfighter3]

[Virgil Showlion]

But will he fight for the US economy or against it during the zombie uprising?

And speaking of zombies, how about that US housing market? *buh-boom tsssh*

[The Virginian]

how about that US housing market?

It will be years before the housing market fully recovers. Maybe if we encourage a "Baby Boom" ......................... in about 20 years?

[Virgil Showlion]

Food, fuel, and commodity prices up anywhere from 8-30% in 2011 alone. Gold gains beat out the S&P last year and is doing so again YTD.

I've said it once and I'll say it again: the core CPI is 55% housing prices by weight. As long as median home prices continue to plumb new depths (and from today's numbers, that seems like precisely what will continue to happen), core CPI remains at tepid numbers. It's the gift that keeps on giving.

We'll have 3%-ish "inflation" until you can buy a home anywhere in America for less than the price of a high end sedan. And I have no doubt that when (if) there is a recovery in housing prices, they'll reweight the CPI to whatever allows them to print, print, print without meddlesome inflation hawks making a stir about it.

The game has always been and continues to be manufacturing consent for QE 2.3, 3, 4, ... thru infinity. They're playing exactly the same game in Europe and the ECB's balance sheet is exploding only a little more quickly than the Fed's.

[jarhead1976]

By trying to avoid deflation , the FED is doing the exact oppisite. By lowering interest rates, combined with our huge national debt, while printing more and more money all point to higher Inflation. The dollar continues to drop in value. The only asset class in deflationary mode is housing. Putting pressure on an already unstable economy and the reason behind the mess in the first place.

[rovo]

Jan 26, 2012 13:18:04 GMT -5 @jarhead1976 said:

By trying to avoid deflation , the FED is doing the exact oppisite. By lowering interest rates, combined with our huge national debt, while printing more and more money all point to higher Inflation. The dollar continues to drop in value. The only asset class in deflationary mode is housing. Putting pressure on an already unstable economy and the reason behind the mess in the first place.

The dollar really hasn't suffered much change in value over the last 5 years. I know everyone likes to make noise when the dollar drops but they remain very quiet when it rises. Look at the 5 year chart of DXY for verification of my comment.

[jarhead1976]

I agree Rovo . As long as China and Japan do not pull the trigger on their biggest consumer. US

[Aman A.K.A. Ahamburger]

Food, fuel, and commodity prices up anywhere from 8-30% in 2011 alone

Food and Fuel ARE commodities. Housing is depressed, retailers have slashed prices. So 15% of monthly expenses have experienced inflation. Everything else is stagnant or falling, or STAGFLATION, is present.

Jan 26, 2012 13:38:46 GMT -5 rovo said:

Jan 26, 2012 13:18:04 GMT -5 @jarhead1976 said:

By trying to avoid deflation , the FED is doing the exact opposite. By lowering interest rates, combined with our huge national debt, while printing more and more money all point to higher Inflation. The dollar continues to drop in value. The only asset class in deflationary mode is housing. Putting pressure on an already unstable economy and the reason behind the mess in the first place.

The dollar really hasn't suffered much change in value over the last 5 years. I know everyone likes to make noise when the dollar drops but they remain very quiet when it rises. Look at the 5 year chart of DXY for verification of my comment.

Exactly Rovo, and this my friend is an even better chart to look at, JMO.



Since 1971 the dollar index has, roughly, averaged around 90. I see that when interest rates finally did go up after the printing in the 70's, it was the exact opposite of what some people think is coming.

As far as China and Japan goes. Again, China needs the US way more that we need them..

China Is 175.6% Dependent on the U.S.
www.forbes.com/sites/gordonchang/2012/01/22/china-is-175-6-dependent-on-the-u-s/

Oh ya and Russia is diversifying their currency holdings into CDN dollars, not RMB or gold.

[jarhead1976]

Another interesting chart!



With Japan facing the recover from its Disasters @ $285 billion so far, They can always sell their Treasury notes. China has already started slowly. Like I have agreed before its unlikely because it would just make their products more expensive to Import.
I am sure you are all aware of the results of the selling of these Bonds would have on our economy.

[Driftr]

Jan 25, 2012 18:25:08 GMT -5 tyfighter3 said:

Larry Summers?

I thought he was heading to The World Bank.

www.usnews.com/news/articles/2012/01/18/obama-may-pick-larry-summers-to-head-world-bank

[rovo]

I guess I'm in the minority around here but I think the Treasury Dept. as well as the FED have both done a better job at handling the economic crises than Congress has done. It is like the first two are trying to put out the fire and Congress is throwing gasoline on it.

[dancinmama]

Jan 27, 2012 12:39:56 GMT -5 @lonewolf said:

Dang! I thought this thread was about....

Pelosi

[Deleted]

Jan 27, 2012 12:50:13 GMT -5 rovo said:

I guess I'm in the minority around here but I think the Treasury Dept. as well as the FED have both done a better job at handling the economic crises than Congress has done. It is like the first two are trying to put out the fire and Congress is throwing gasoline on it.

A braindead monkey could do better than Congress.

[The Virginian]

Dang! I thought this thread was about....

Pelosi

Okay now - Don't give me false dreams. Besides her Plastic Surgeons might have to start looking for work.

[Aman A.K.A. Ahamburger]

I am sure you are all aware of the results of the selling of these Bonds would have on our economy.

I agree, but that's the thing. It would damage their economy even more. The need everyone to help them keep going. They are 35% supported by the consumers right now. For that to Change those trillions are going to have to be spent on the people. 600 million people will revolt if everthing falls apart over there.

So mutually assured destruction results in the freedom of a entire slave population.

Thank you for your service to this great nation Jar!!

[Aman A.K.A. Ahamburger]

I'm am with ya Rovo. I personally think that history will be kind to Ben B.

[The Virginian]

I personally think that history will be kind to Ben B.

Maybe, But with most of what the Fed has done being done under secrecy history may never know how to properly evaluate him. I don't agree with most of what I know he's done.

We do need to get Goldman Sachs out of control of the Fed and the Treasury.