Archives for December 2012

Government and Big Banks Joined Forces to Violently Crush Peaceful Protests

Courtesy of ZeroHedge. View original post here. Submitted by George Washington. The definition of fascism used by Mussolini is the “merger of state and corporate power“. Government and the big banks are in a malignant, symbiotic relationship. And our economy now exhibits a merger of state and bank power. Prominent economist Robert Kuttner said in […]

A Faux Deal and Ongoing Currency Wars

Gold This Time Last Year – A Faux Deal and Ongoing Currency Wars Courtesy of Jesse's Cafe Americain The waters are a little muddied this time around because of the fiscal fluff and the January debt ceiling policy scrum to come, but lo and behold, gold rallied sharply on the last day of the year, after […]

Cliff Deal – Winners and Losers

Courtesy of Bruce Krasting   My read of the President's speech is that there is a deal that will avoid the cliff. So go enjoy New Year’s Eve. Give it another 30 days, and we’ll be right back into the soup. My scorecard on the deal. -If you’re unemployed, you’re a winner. You get another extension […]

Gold Has Longest Streak of Annual Gains Since 1920

Courtesy of Mish. Bloomberg reports Gold Extends Longest Streak Since 1920 on Central-Bank Stimulus. Gold rose, capping the longest annual gain since at least 1920, on renewed concern that central banks from Europe to China will take steps to spur economic growth and as U.S. leaders near a budget deal. Gold futures for February delivery […]

China Manufacturing PMI Shows Modest Growth; Don’t Expect Bounce to Last

Courtesy of Mish. The HSBC China Manufacturing PMI™ shows modest growth this month. The index is at 51.5 with growth above 50. After adjusting for seasonal factors, the HSBC Purchasing Managers’ Index™ (PMI™) – a composite indicator designed to give a single-figure snapshot of operating conditions in the manufacturing economy – posted 51.5 in December, […]

Gold, Stock Market Up as Fiscal Cliff Can-Kicking Deal at Hand

Courtesy of Mish. S&P 500 futures are up 24 points (1.7%) and gold is up $22 (1.3%) on news McConnell-Biden Said Close to Deal Except for Sequester The White House and congressional negotiators have agreed to contours of a deal to avert the fiscal cliff including tax cut extensions, with the remaining sticking point being […]

China manufacturing activity hits 19-month high

China manufacturing activity hits 19-month high (via AFP) China's manufacturing activity surged to a 19-month high in December, British bank HSBC said Monday, adding to signs of recovery in the world's second-largest economy. The year's final purchasing managers' index (PMI) from the lender hit 51.5, up from 50.5 in November when the figure returned to […]

Washington and Colorado as precedent for cannabis legalization?

  Source: via Charlie on Pinterest Washington and Colorado as precedent for cannabis legalization? (via GlobalPost) An unwanted item on President Obama’s second term agenda was contributed by voters in Colorado and Washington State who, by impressive margins on November 6, passed ballot measures making it legal to smoke pot recreationally, without any prescription […]

BoJ will work with new govt, governor says

BoJ will work with new govt, governor says (via AFP) The head of Japan's central bank has vowed to work with the nation's new government to tackle deflation, according to an interview published on Saturday. "The Bank of Japan, not just the government, will support efforts to strengthen growth potential," governor of the bank, Masaaki […]

Covered Calls – The Hidden Risk for 2013 and Beyond

Covered Calls – The Hidden Risk for 2013 and Beyond Courtesy of Paul Price at Market Shadows I’ve scaled way back on covered call writing (selling calls) lately. For the last three decades, writing calls has worked very well for me. Writing calls on shares of stocks is the simplest, most conservative approach to option trading. […]

Online Education and College Degrees at Far Lower Prices is the Future; Virtual Classrooms to Reach 1 Billion People

Courtesy of Mish. I received an interesting email from “James in Arizona” today. James offers this comment on online education. Greetings from Arizona, Mish, I ran across this website while exploring various online options for my daughter (in high school, but she’s very computer savvy, so I’m looking for options to expand her interests/basis). It […]

Stephen Roach On Why Abe’s Aggression Won’t Save Japan

Courtesy of ZeroHedge. View original post here.   Source: via r o b i n on Pinterest   Submitted by Tyler Durden. Authored by Stephen Roach, originally posted at Project Syndicate The politicization of central banking continues unabated. The resurrection of Shinzo Abe and Japan’s Liberal Democratic Party – pillars of the political system […]

Monetary Malpractice: Moral Maladay

Courtesy of Gordon T. Long of, We have a Crisis of Trust in America and it has become so pervasive that it is paralyzing America's natural inclination towards risk taking and innovation. This Crisis in Trust is a direct result of Monetary Malpractice and the Moral Malady which it has inflicted on America. Some would […]

Obama Issues Executive Order Granting Pay Raises to Congress, the Vice President, Judges; Any Raise is Too Much; Congress Approval Rating is 18%

Courtesy of Mish. Congress has done such a beautiful job handling the fiscal cliff and debt ceiling that president Obama felt it mandatory to issue an Executive Order Giving Biden, Congress Pay Raises President Barack Obama issued an executive order to end the pay freeze on federal employees, in effect giving some federal workers a […]

Government Dependents Outnumber Those With Private Sector Jobs In 11 U.S. States

Government Dependents Outnumber Those With Private Sector Jobs In 11 U.S. States Courtesy of Michael of Economic Collapse   America is rapidly becoming a nation of takers.  An increasing number of Americans expect the government to take care of them from the cradle to the grave, and they expect the government to dig into the pockets […]

The IMF On China’s Over-Investment

The IMF on Overinvestment   Source: via Ecoseed on Pinterest Courtesy of Michael Pettis at China Financial Markets The IMF’s Il Houng Lee, Murtaza Syed, and Liu Xueyan have published a very interesting and widely noticed study called “Is China Over-Investing and Does it Matter?” In it they argue that there is strong evidence that China is […]

A Re-look at my “Calls” for 2012

Courtesy of Bruce Krasting. A year ago I made a number of projections for 2012 (Link). The following are ones that I got more right than wrong: 2012 Mitt Romney will be the Republican presidential candidate. The election will go to Obama. The battleground states will be Pennsylvania and Ohio. Billions will be spent on […]

America’s Deceptive 2012 Fiscal Cliff

America’s Deceptive 2012 Fiscal Cliff By Michael Hudson (Originally published at Naked Capitalism) How today’s fiscal austerity is reminiscent of World War I’s economic misunderstandings When World War I broke out in August 1914, economists on both sides forecast that hostilities could not last more than about six months. Wars had grown so expensive that governments quickly […]

Lamarck and the Missing Lnc

Fascinating discoveries in epigenetics continue at a rapid pace: Scientists May Have Finally Unlocked Puzzle of Why People Are Gay – US News and World Report ~ Transgenerational epigenetic inheritance may play a role in sexual orientation. An Epi Phenomenon ~ Stephen Baylin discovered an epigenetic modification that occurs in most cancers. Baylin also identified a handful of […]

Inherited Resistance to Cocaine

This is fascinating and if applicable to humans (and why wouldn't it be?) has enormous implications. Cocaine not doing enough for you lately – talk to daddy.  Inherited Resistance to Cocaine Cocaine-using rat fathers pass epigenetic changes on to their sons that make them resistant to coke addiction. By Ed Yong  Wikpedia, DEAIf a rat becomes addicted […]

16 Things About 2013 That Are Really Going To Stink

16 Things About 2013 That Are Really Going To Stink Courtesy of Michael at Economic Collapse The beginning of the year has traditionally been a time of optimism when we all look forward to the exciting things that are going to happen over the next 12 months. Unfortunately, there are a whole bunch of things about […]

Blowing Up: The Transfer Of French Nuclear Technology To China

  Source: via Tim on Pinterest   Blowing Up: The Transfer Of French Nuclear Technology To China Courtesy of Wolf Richter, Technology transfers, whether on a contractual basis or through theft, have long bedeviled companies that want to benefit from China’s cheap labor and 1.3 billion consumers. Automakers, aerospace companies, technology outfits…. it’s the […]

Cushing 50 Million, Boom & Bust Cycles, US Debt & Recession

Cushing 50 Million, Boom & Bust Cycles, US Debt & Recession Courtesy of EconMatters Cushing Magic 50 Club The final EIA Inventory report for 2012 is coming out on Friday, and according to the API report, Cushing inventories increased another 2.23 million barrels to a record 49.2 million. All this build in Cushing happened even as […]

Mercy! Isn’t a Late Day Selloff Illegal?

Courtesy of Mish. I hope you are as outraged as I am by this late-day stock market action. S&P 500 Futures 10-Minute Chart Since when is a late day selloff legal? And for an entire hour with six consecutive red candles! And in the month of December too! What happened to my Santa Rally? I […]