Update 2: US Dollar hits 15 month low..

Update 2: US Dollar hits a 15 month low, this as Geithner said in Tokyo today that we fully support a strong US Dollar. I wonder if he got more laughter? He has been ham handed on Dollar policy since March.

The dollar dropped to a new 15-month low as the the euro rose above $1.50 Wednesday morning, even as Treasury Secretary Timothy Geithner reiterated the administration’s stance that a strong dollar is good for the U.S. economy.Geithner, in a speech in Tokyo on his way to a summit of Asian finance ministers in Singapore, also said low interest rates and other government supports for the economy were still needed.

The expectation that the Federal Reserve will keep the key U.S. interest rate near zero has been weighing on the dollar. Higher interest rates make a currency more attractive for investors, since bets made in that currency can earn higher returns.

Against a basket of six major currencies, the dollar hit a 15-month low of 74.775.

“The momentum and the conviction that the Fed will not raise rates any time soon, coupled with the fact that the major central banks continue to provide liquidity liberally” means the “fundamental force” weighing on the dollar will persist, said Brown Brothers Harriman analyst Marc Chandler in a research note Wednesday….

China is making noises about letting the Yuan rise. This would be helpful to all the other economies whose exports are suffering as we let our dollar fall, they are trapped while the Yuan is pegged. Let’s see what shakes out. IMO it is a bad sign for the doollar. This would have been GREAT 5 years ago. Now it is a commentary on the weakness of our currency.

China sent its clearest signal yet that it was ready to allow yuan appreciation after an 18-month hiatus, saying on Wednesday it would consider major currencies, not just the dollar, in guiding the exchange rate.

In its third-quarter monetary policy report, the People’s Bank of China departed from well-worn language on keeping the yuan “basically stable at a reasonable and balanced level.” It hinted instead at a shift from an effective dollar peg that has been in place since the middle of last year

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November 9, 2009. Tags: , , , , , , , , , , , . Economy, Finance, Obama Administration, Politics, Taxes, Wall St. 1 comment.

Zombie Bull Rides Again! Dollar drops, Dow roars plus Gooooold! hits another high

Goooooooooold hit ANOTHER high now up $7.5 to $1103.2, you know what that means…it’s Bassey time!

See Zombie Bull Ride.

Ride Zombie Bull Ride.

zombiebull

Ride Zombie Bull Market Ride!

Who will catch the US Dollar when Zombie Bull realizes he cannot afford to buy feed with his devalued currency?

American minds want to know. Since we LIVE in, you know, the dollar.

Moron market thinking really short term I do not see the future gazing markets of my youth at play here.

DOW about to close up 188.71 now 10,212.13

S & P up 21.85 – 1091.15

NAS up 37.06 to 2149.50

and of course all due to the US Dollar hitting a recent low IMO. 10 yr 3.48% Oil is up $1.75 to $79.18

Update: .DXY (US Dollar  Index) 75.04

November 9, 2009. Tags: , , , , , , , , , , , , , , . Economy, Finance, Obama Administration, Politics, Taxes, Unemployment Statistics, Wall St. Comments off.

Update: Deficit for FY 2009 to hit $1.4 trillion, another record: Congress faces hurdles in push for second stimulus…

Update: TOTUS voted against raising the debt ceiling as a Senator. The hypocrisy continues unabated

Another record deficit projection from CBO. Can’t we send TOTUS to the IMF and he can withdraw us from all foreign subsidy obligations the way he does with our defense agreements? I can see it now:

Of course, they are not letting this stop them from adding the ginormous healthcare entitlement to the economy but they appear wobbly on a jobs bill now, figures.

WSJ:

Democratic leaders pressed President Barack Obama on Wednesday to extend more elements of the existing economic-stimulus package, and to possibly add tax cuts that were rejected the first time around, despite a record budget deficit that is giving some lawmakers pause.

On Wednesday, the Congressional Budget Office estimated that the federal deficit for fiscal 2009 will be $1.4 trillion…The figure remains the largest budget deficit, measured as a percentage of gross domestic product, since World War II. That so far isn’t stopping Democratic leaders discussing further stimulus measures.

Worried that the economy isn’t creating jobs, House Speaker Nancy Pelosi (D., Calif.) and Senate Majority Leader Harry Reid (D., Nev.) went to the White House for a hastily planned meeting. White House economists had already embraced extending enhanced unemployment-insurance benefits and subsidies for the purchase of health insurance under Cobra. Both of those measures are currently set to expire Dec. 31.

After the meeting, Mr. Reid made it clear he also wants an extension of a generous tax credit for first-time homebuyers, something the White House was leaning against as too expensive for the number of jobs it might create(…) Go read the entire piece..

They are going to attempt a giant ROADS AND INFRASTRUCTURE BILL now, which is what they CLAIMED was in the giant spendulus package, guess Apollo Alliance didn’t have enough union jobs to warrant any real infrastructure when they wrote our stimulus bill. Frakkers.

October 7, 2009. Tags: , , , , , , , , , , , , . Economy, Finance, Housing, Obama Administration, Politics, Unemployment Statistics. 2 comments.

VA Debate: McDonnell – Deeds

Vodpod videos no longer available.

Politico headline reads ‘Deeds points finger at Washington’ .

BWAAHAAA Remember: ‘Obama’s Long coattails gonna keep a Dem majority’ they said! BWAAAHAA!! More like an anchor baby! Go McDonnell!!

Virginia Democratic gubernatorial nominee Creigh Deeds said in an interview that he was lagging in the polls entering the final weeks of the campaign in part because of voter concerns over his national party’s agenda.

“Frankly, a lot of what’s going on in Washington has made it very tough,” Deeds said in a “Battleground Virginia” interview sponsored by ABC 7/WJLA-TV, POLITICO, Google and YouTube. “We had a very tough August because people were just uncomfortable with the spending; they were uncomfortable with a lot of what was going on, a lot of the noise that was coming out of Washington, D.C.”

As one of two off-year governor’s races — the other is New Jersey — that are being closely watched for signals about the 2010 midterm election landscape, the factors behind Deeds’s struggles to date are being studied closely in both parties….

more about “VA Debate: McDonnell – Deeds “, posted with vodpod

October 6, 2009. Tags: , , , , , , , , , , , , . Economy, Obama Administration, Politics, Unemployment Statistics. 1 comment.

Update 5: Senate makes a deal, UE extension for all for 14 weeks; UE extension held up: Senate debates how many workers should be eligible; Schumer says UE extension vote to come this week; WSJ: WH & Congress negotiating to extend portions of stimulus, including unemployment extension and Employer subsidies of COBRA coverage…

10/23 See Update https://moderateinthemiddle.wordpress.com/2009/10/23/unemployment-update-senate-cloture-vote-on-unemployment-extension-next-tuesday/

Update 6: WSJ covers the Senate proposal:

Senate Democrats on Thursday introduced legislation that would extend by 14 weeks unemployment insurance benefits for jobless Americans in all 50 states.

It would offer an additional six weeks of federal assistance for unemployed people in the hardest-hit states with unemployment rates above 8.5% over a three month period….

Update 5: Okay the Senate has cut a deal to extend UE for everyone not just states over 8.5% UE rate, for 14 weeks, but when will they pass the bill and git r done?. Also, still on the table:

Senate Democrats reached a deal Thursday to extend the benefits an additional 14 weeks in every state. Both proposals are paid for by extending a federal unemployment tax.

Also on the table: extending subsidies for laid-off workers to help them keep the health insurance their former employers provided, known as COBRA. The current program, which covers workers laid off through the end of the year, costs nearly $25 billion.

Congressional leaders haven’t settled on the length of an extension, or how to pay for it.

They are trying to buy off Seniors with a check by increasing..SS PAYROLL TAXES!!!!!

Several bills would issue extra payments to the more than 50 million Social Security recipients, to make up for the lack of a cost-of-living increase next year. One bill would set the one-time payments at $250, matching the amount paid to Social Security recipients and railroad retirees as part of the stimulus package enacted in February.

The payments would cost about $14 billion and would be paid for by applying the Social Security payroll tax to incomes between $250,000 and $359,000 in 2010. Currently, payroll taxes apply only to the first $106,800 of a worker’s income.

Now the Senate is holding up the UE extension arguing over how many people to cover. What new madness is this! But they are fine pushing through a bazillion dollar health care bill? And now they worry about cost on UE extensions??

Man let’s just bark at the moon, it’s probably as effective as calling these whackadoodles on the Hill but here is the linky to look up your Senator if you need a UE extension, call them..

*Ozzy courtesy of jman19428

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October 2, 2009. Tags: , , , , , , , , , , , , , , . Economy, Labor Department, Obama Administration, Politics, Taxes, Unemployment Statistics. 11 comments.

Update: Cramer responds; Julian Robertson on the inflation risk: ‘it’s almost Armageddon if China & Japan don’t buy our debt’

Update: MiM rants, scroll down.

Update: Cramer responds to Robertson’s calls, he agrees and says Pelosi Waxman Rangel are anti business and anti shareholder and business profits:

Vodpod videos no longer available.

When Julian Robertson speaks, investors listen. To say that Wall Street respects the Tiger Management founder and chairman would be an understatement. So much so that Cramer urged anyone who disagreed with Robertson to “recalibrate” his position. “Because he is that good,” Cramer said.

One of the silver sages is Robertson. And he agrees with the high high risk of our humble forecast of HYPERinflation…

CNBC:

The US is too dependent on Japan and China buying up the country’s debt and could face severe economic problems if that stops, Tiger Management founder and chairman Julian Robertson told CNBC.

“It’s almost Armageddon if the Japanese and Chinese don’t buy our debt,” Robertson said in an interview. “I don’t know where we could get the money. I think we’ve let ourselves get in a terrible situation and I think we ought to try and get out of it.”Robertson said inflation is a big risk if foreign countries were to stop buying bonds.

“If the Chinese and Japanese stop buying our bonds, we could easily see [inflation] go to 15 to 20 percent,” he said.  “It’s not a question of the economy. It’s a question of who will lend us the money if they don’t. Imagine us getting ourselves in a situation where we’re totally dependent on those two countries. It’s crazy.”

Vodpod videos no longer available.

Robertson said while he doesn’t think the Chinese will stop buying US bonds, the Japanese may eventually be forced to sell some of their long-term bonds.“That’s much worse than not buying,” he said. “The other thing is, they’re buying almost exclusively short-term debt. And that’s what we are offering, because we can’t sell the long-term debt. And you know, the history has been that people who borrow short term really get burned.”

And what is the solution? GROWTH!!!!!!!

The only way to avoid the problem, he said, is to “grow and save our way out of it.”“The U.S. has to quit spending, cut back, start saving, and scale backward,” Robertson said. “Until that happens, I don’t think we’re anywhere near out of the woods.”

Robertson is not very optimistic about the short-term. “We’re in for some real rough sledding,” he said. “ I really do think the recession is at least temporarily over. But we haven’t addressed so many of our problems and we are borrowing so much money that we can’t possibly pay it back, unless the Chinese and Japanese buy our bonds.”

Update: Where have we heard similar sentiments to those expressed here by eminence grise Julian Robertson? Oh yes, I know at the Tea Parties !!!Where regular (ie beneath the considerations of the elite gentrified media and politicians who think they know better than we what we need) Americans are expressing the same concerns about the out of control spending and rising debt. Main St IS already doing what Robertson is suggesting NEEDS to happen, we are SAVING, we are NOT CONSUMING, we are suffering massive pain in job losses and asset deflation but our productivity is up. The American People are not afraid of a little pain and sacrifice. Our leaders OTOH will not suck it up and tell their their labor supporters that CUTS need to be made, government salaries need to come down, labor salaries need to come down, it is an environment of MASSIVE job loss, ALL SALARIES should be coming down if we are in a free market….

MiM Tax Day Tea Party Sign

MiM Tax Day Tea Party Sign

We are telling Congress to Stop Spending (literally, here is my sign from April 15th) ! We are doing what needs to be done but our idiotic Congressional Leadership (and unlike Cramer I DO blame the Executive Branch, it is top down and we all know it) is shoving down our throats a bigger and bigger expansion of government and regulation and an actual active DISCOURAGEMENT for capital investment!

All in an environment in which they are taxing everything that moves and now we  have the pleasure of being taxed on BREATHING essentially in the health care bill, a poll tax like the ones the British revolted against, uhmmm Richard II?

Anyway, it is our politicians that will be METAPHORICALLY dragged kicking screaming out of office since they seem to be CONSTITUTIONALLY (pardon the pun) incapable of CLOSING the People’s Wallet. Sarah Palin totally GETS THIS BTW. See here for her recent speech. That is why so many of us like Sarah. She RESPECTS us, something the Dear Elites currently in office so clearly do not.

While Main St is instinctively doing the right things to get through this, Congress and Team TOTUS with the assistance of the rah rah cheerleading media are doing the precise opposite of what any rational observer, or financial genius like Robertson (people able to separate themselves from their political inclinations which IMO Krugman et al are unable to do) see needs to be done.

STOP SPENDING, SAVE AND BUCKLE DOWN FOR A FEW YEARS. DISCIPLINE AND FRUGALITY. THE AMERICAN WORK ETHIC IS DEEP IN OUR BONES. WE CAN DO THIS IF CONGRESS WILL ONLY GET OUT OF OUR WAY!!!

2010 elections cannot come soon enough. It would appear that despite millions of Americans expressing their desire for the spending to stop all summer long, they are willfully blind. It seems that only a massive turnover in Congress in 2010 will effectively teach the Critters that the American people will not tolerate being totally removed from the equation when decisions are made that will impact all of us for generations.  ESPECIALLY when we KNOW in our guts they are the wrong decisions.

I mean let’s be honest, why the hexx should the entire country have to carry the load of an enormous new entitlement and debt at a time of recessionary growth and massive deficits with surging existing entitlement costs? Because Obama wants a win in his column and EVERYONE KNOWS IT, EVERY POLL SHOWS THERE IS NO FRAKKIN HEALTH CARE EMERGENCY!! EMTALA laws on the books guarantee ER treatment for ANYONE , a frakkin YETI could show up and get TRIAGE!! /rant off

*Def Leppard courtesy of choppothegreat

September 24, 2009. Tags: , , , , , , , , , , . Economy, Finance, Housing, Labor Department, Obama Administration, Politics, Taxes, Unemployment Statistics, Wall St. 2 comments.

Update: Anyone? Bueller? Market Mover Monday: Smoot-Hawley rises from the grave and TOTUS to ‘admonish’ and ‘push’ for his regulatory scheme today…

Update 2: BWAAAHAA!!! Bob Pisani of CNBC says the traders have been passing around the Ben Stein Smoot Hawley Tariff scene from Ferris Bueller on the floor this morning!! lol..

Update: OMG in his opening remarks TOTUS recognizes Barney Frank D-MA as the man who will be instrumental in leading our financial policies and regulatory reforms. OH NOES! The guy who gave FAN FRED a pass?

He mentions Paul Volcker (who seems to serve primarily as TOTUS’ figurative crucifix against the vampires of reality who note TOTUS is fumbling the economy and implementing disastrous policies) Why does Volcker let himself be used this way? Sad. TOTUS is touting him as the CHIEF of his council of something or other, and we all KNOW Volcker is being ignored..Our previous posts on Volcker here. And here is one of interest concerning his speech in February wherein he said ‘MOST aspects of capitalism will survive’.

Apparently no one ever told TOTUS you don’t start a land war with Asia and you don’t start a trade war with your banker..

TOTUS’ decision to put a tariff on Chinese Tire imports is well..untimely…to say the least. Timmeh Geithner just got back from another round of promising China we would restrain our deficit (AS IF!) and now here is TOTUS starting a trade war. At whose behest?? LABOR OF COURSE!!! Good grief! Our previous post on Smoot Hawley here

…China indicated Sunday it would restrict U.S. imports of chicken and auto products after Washington’s move to slap punitive sanctions on Chinese tire imports, raising tensions in a trade dispute ahead of two planned meetings between the countries’ leaders.

Citing a jump in Chinese imports, the Obama administration said Friday it would impose stiff tariffs on Chinese-made tires for the next three years, invoking a section of trade law that China agreed to as a condition for its joining the World Trade Organization in 2001. The move essentially would cut off the source of nearly 17% of all tires sold in the U.S. last year and hit cost-conscious consumers particularly hard, as retailers will have to find alternative sources for the lower-end tires that make up much of what China sends to the U.S….

wall_st_bear_smallAnd just to follow up, TOTUS will come on down to Wall St to give another lecture and remind everyone that they are bad bad people. Despite Sheila Bair’s resistance, TOTUS is leaning HARD on FDIC and SEC to give Treasury and the Fed expanded powers..

WSJ:

President Barack Obama, speaking on Wall Street Monday on the first anniversary of the crescendo of the financial crisis, will discuss the administration’s plans “to wind down government involvement in the financial sector,” will push for “immediate action” on regulatory changes need to prevent future crises and admonish Wall Street to avoid the practices that led to the crisis, an administration official said. The president’s remarks, follow similar comments from the Treasury and Federal Reserve aimed at blunting criticism that they lack an “exit strategy” for withdrawing their support for the financial system with speeches and documents timed for the first anniversary of the worst moments of the crisis.

More after the break:

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September 14, 2009. Tags: , , , , , , , , , , , . Economy, FDIC, Finance, Obama Administration, Politics, Popular Culture, Wall St. Comments off.

Update: Glenn Beck 1 – TOTUS 0…

Update: THE most important point from MM:

…The story is not just about Jones.

The story is about Adolfo Carrion, Carol Browner, Vivek Kundra, Nancy DeParle, John Holdren, Cass Sunstein, Mark Lloyd, Obama’s education comrades, and the culture of circumvention and corruption that plagues this White House.

The story is the czar explosion, purposeful undermining of congressional oversight, Valerie Jarrett’s promotion of a two-bit Jeremiah Wright in eco-guru’s clothing, and the public vetting of unaccountable Obama appointees that Washington won’t do.

They don’t get it. They’re in the tank. Behind the curve. And slouching towards irrelevance….

Shout out to GatewayPundit without whom actual investigative reporting would never have been done!

Courtesy of politicsnewspolitics

-Healthcare Public Option broken out to separate post, MiM 10:20am AZ time.

September 6, 2009. Tags: , , , , , , , , , . Economy, Finance, Healthcare, Obama Administration, Politics, Popular Culture, Taxes, Terrorism. Comments off.

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