Posted on 06/04/2012 3:04:50 AM PDT by tobyhill
Things are shaping up for another hot summer on Wall Street, and there is a long, long way to go yet.
Federal Reserve Chairman Ben Bernanke will be back on Capitol Hill on Thursday to testify before a congressional committee about the state of the U.S. economy. He's not going to get an easy ride.
The blue-chip Dow average of stocks is now negative for the year. Employment appears to be slowing to a snail's pace and Europe remains mired in crisis.
"This puts the Fed firmly in play and they will likely feel compelled to respond," said Tom Porcelli, chief U.S. economist at RBC Capital Markets in New York, after data on Friday showed U.S. job growth in May was the weakest in a year.
"The missing ingredient preventing the Fed from action had been the equity market, but now we are seeing it softening," he said. "Equities are falling and that was the last hurdle for Fed policy action because all the other criteria have been met."
(Excerpt) Read more at marketday.msnbc.msn.com ...
The voters will do something in November.
In 2012, Europe is crashing and burning. A lot of gold/capital could come to America if we don't act stupidly. But I suspect that the Fed will try to bail out Europe and drive us deeper into debt at a time when we could be turning the corner with responsible fiscal policy.
Keynesian economics does not work. How many times do we need to re-learn this lesson?
The voters will try. The Obama Regime, their campaign and particularly the DOJ are moving heaven and earth to stop the various state efforts to purge voter rolls of illegals and the dead and to have meaningful voter ID laws. There will be massive fraud this Fall. Committed leftists/Marxists are not about to let a little thing like the popular vote interfere with their remaking of America.
Obamacare and expiration of Bush Tax cuts are the reason this economy is stalled.
A survey of Business said 71% neither Small business wanted to borrow money or ever thought we came out of a recession.
Oh they not hiring either and they created over 70% of all Jobs in the last 5 years.
It has no rational use in our present world other than the one possibility which some have noted, i.e. the stuff is soft, half again as dense as lead and totally inert, and would be the ideal metal for waterfowl shot. You could kill geese all day long with 2.75" shells and #7 shot. You'd have to alloy it with something hard enough to withstand the acceleration.
boner will cave and give obamao all that he asks for and probably tack some gop/e pork onto the bill to boot. QEIII here we come.
Economic swirly... FLUSH!
LLS
Yep, printing more money has always solved economic problems. /s
LLS
Edited for accuracy.
Modern computing and all that goes along with it would be impossible without gold... ask anyone that works in the industry. They mine old computer equipment... for the gold and other precious metals.
LLS
What I’ve read is that upwards of 80% of the world’s current production of gold is used for jewelry, and there are less expensive things to make rings and bracelets out of. Any use of the stuff for connectors could not amount to more than a tiny fraction of gold production. and the stuff would have little real value based on that.
Trouble is, it works for some. The holders of gold and owners of banks make a killing on the misfortune of those who lose their wealth - the poor.
We see the wealthy buying up foreclosed houses to use as rentals for the newly homeless.
Fractional reserve banking, fiat money and easy credit create a casino few can resist. Problem is, in a casino the house always wins.
If gold had no value as you say, wouldn’t it be the “less expensive thing”...
If gold is worthless folks sure love paying a lot for it, and try and argue for a stainless steel ring verse a gold one with the average woman...
If gold had no value as you say, wouldn’t it be the “less expensive thing”...
If gold is worthless folks sure love paying a lot for it, and try and argue for a stainless steel ring verse a gold one with the average woman...
Fed Reserve and Treasury fear massive deflation. Banks already shed their bad mortgages to the taxpayers, and deflation will make all the good mortgage notes they still hold underwater as home prices fall from deflation. Deflation also means people will take out less loans then prior. Banks will be stuck with loans with no replacement larger loans from consumers. Fractional banking needs the future loans to be larger then current loans in order to thrive. Deflation kills bank profits. Fed Reserve and Treasury is so infiltrated by fed workers who want a lucrative career in Wall Street and people sent by Wall Street to guard their interests that many Americans never realize that Wall Street had committed a silent coup and have taken over the US gov for the bankers. Deflation will be avoided by inflation. First the bankers via MSM they control spin that they were too big to fail. Now they will via MSM spin that Americans can not endure austerity thus the politicians have no choice but to accept devaluation of the US dollar and retire our huge deficits via inflation (or destruction of the middle class). The only thing the bankers cannot control is Black Swan events that could unhinge the derivatives market. Obama did all working Americans a favor, he signed into law via exec order, that the US taxpayers will back up any losses in the derivative market by the Wall Street bankers. JP Morgan just acknowledged 2 billion in losses playing the derivative market betting on Greek bonds, now it is up to 5 billion in losses and rumors that it can go as high as 17 billion. CEO Dimon will be testifying in front of Congress soon, but requested a delay as JPM accountants are trying to determine exactly how large the losses are because the derivative market is not regulated or in the open like normal exchanges. Thanks to Obama and bank agents in Treasury the taxpayers will be on the hook to cover these losses.
It isn’t worthless. But the idea of individuals wanting to own the stuff other than rings and bracelets is nearly insane and use of gold as a basis for money, particularly in combination with fractional reserve banking, led to gigantic grief all during the 1700s and 1800s and wanting to go back to that is nearly criminally insane.
As the economy falters the Fed will step in it. Again. There, it is corrected.
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