Friday, December 2, 2011

All Risk Off Markets ready to rally...

Treasuries and Dollar are done with their consolidations (see this previous post Bank of the United States of America is approaching critical mass)…SP500 resistance WALL held this attempt solidly so far. Lots of long wicks on currency candles over the last few days. EURO basis swap reversed and is even more negative again today.

The dollar action is VERY damaging to the continued health of any bullish action in risk assets. What’s more is that all the US Treasuries have completed the consolidations that I posted earlier in the week…that is also very bad for Risk assets…with all the interest in getting dinosaurs out on TV touting dollar debasement and real assets…you could not get a much more inverse signal.

Peter Schiff has never gotten anything right when it comes to a trading call or the Dollar. He has made one or two macro calls that setup his reputation…but when we have major dollar liquidity issues and the guy still promotes a crash of the dollar despite it being clear that credit is being destroyed at a much faster pace than any central bank can print or replenish, he is clearly out of touch with reality or has written one too many books and is not allowed to change his thesis publicly.

Also, please reread this post: Black Friday…Black Monday…either way the Jig is up… Things have gone pretty much as expected. Actions by the our financial engineering team and central bankers have demonstrated that things are much worse than they are admitting publicly and also that they are not in control.

Why don’t they use unemployment to population ratio for the rate calculation? What kind of BS is it to use the unemployment to workforce as the ratio?  I guess its easy to understand really, WORKFORCE is an engineered number and can easily be changed at a whim to facilitate achieving a particular target. Without this movable variable, the government numbers might actually have to stand up to close inpsection and we certainly would NOT want that. At this rate, the workforce can shrink by anoher 5 million jobs, the population can increase and the unemployment rate will actually continue to drop dramatically. What a scam!

I also suggest that everyone hear this interview: Ann Barnhardt
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