Thursday, November 17, 2011

European Mess, Celente Gets Burned. Gold, Jobs Trade $$

I am heading for Baltimore for a little end of week coin confab. A few things (and I mean a few. Lol) are on my mind.

  1. Europe. Europe's €1 trillion (£854bn) rescue fund has been forced to buy its own debt as outside investors become increasingly concerned about the worsening eurozone sovereign debt crisis.
    [link to]. The only answer to this debt conundrum is print, print, print. And they shall. French and Spanish bond auctions were weak meaning higher yields, or more dead canaries in the coal mine.
  2. Gold. Down, despite this certainty of mad printing, down again today. It remains subject to the whims of fund managers and the like who need to lighten up when their paper “investments” go up in flames, or are about fall off a cliff. Yet, there are buyers who support the gold market. Take Central Bankers, please. Apologies to the great Henny Youngman. But in all seriousness, central banks are buyers: CNBC:
  3. This again says to me, be patient with gold even if the price is volatile since it is priced in volatile dollars. It's at a bargain price. Physical gold, especially rare coins. Did you hear about futurist and doom and gloomer Gerald Celente having his hind quarters handed to him at Mann (MF) via the CME and Lind Woldock? Please pardon the giggly anchor. The video is not really funny.
  4. Jobless claims at 388k (lower). Color me a skeptic. Millions are off the government's jobless benefits and no longer eligible for benefits. It will be interesting when the job leavers and those who have run out of benefits start being tabulated again as part of a group of renewed job seekers.. The UNemployment rate will actually rise thanks to the screwy way the data is thrown together. Is this the excuse for Wall Street to rally today? Or is the prize behind door #4....
  5. Housing starts were stronger than expected. The smoke and mirrors used here center around strong multi family unit construction. Single family starts? Dead. The crowd could choose the 'reality' door and well that would result in what we saw yesterday: a little withdrawal of the "hopes".
  6. Gee Wally, how does this happen? From “The export miracle, that we have been cantankerously remonstrating against the possibility of for much of the last year, appears to be running into a wall of reality. The Economist puts its usual number-centric and acerbic spin on the nonsense that economists spew with regard to everyone exporting their way out of the debt-laden deleveraging quagmire we are in. Economists are constantly urging governments to adopt policies that would reduce global imbalances—which, in crude terms, means that China should slash its current-account surplus and America its deficit. Yet they ignore the biggest imbalance of all: the current-account surplus that planet Earth appears to run with extraterrestrials. The world exported $331 billion more than it imported in 2010!”
jk here: I'll tell you how. From trade formulas created in the 30s. Shhhh. It's a deep and dark little secret. Yes, the Fed has it backwards. Perhaps we need LESS consumption? Wouldn't that be a shocker. 

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