All this money sloshing around over seas (trillions and trillions) as I predicted is now coming home as Europe melts down. But as soon as the voters over there fire the nuts who are cutting the budgets putting people in the poor house are gone they will pick up too.
Just read below, as the Fed pumps up the European banks so they can invest here to save their sorry asses because their politicians are nuts.
The rich take care of their own!
Housing still sucks but a year or two with a new Congress who can ignore, but pay lip service to, budget cutting will make a big difference. These bad loans, as I've been bitching about, have to be removed from the books. Default, payoff, or forgiven and 2+ million new families a year will be back in the market.
We are floating in oil and gold but there is no place for the speculators and pension funds to go for big enough returns to keep their investors happy. Expect gas prices to remain aver 3$ a gallon until the auto industries world wide replace the current inventory with 40- 50 and higher fuel misers.
But, nothing has really changed, and the boom and bust cycle will continue.
Mike Norman Economics: The whole world is short dollars!
Just read below, as the Fed pumps up the European banks so they can invest here to save their sorry asses because their politicians are nuts.
The rich take care of their own!
Housing still sucks but a year or two with a new Congress who can ignore, but pay lip service to, budget cutting will make a big difference. These bad loans, as I've been bitching about, have to be removed from the books. Default, payoff, or forgiven and 2+ million new families a year will be back in the market.
We are floating in oil and gold but there is no place for the speculators and pension funds to go for big enough returns to keep their investors happy. Expect gas prices to remain aver 3$ a gallon until the auto industries world wide replace the current inventory with 40- 50 and higher fuel misers.
But, nothing has really changed, and the boom and bust cycle will continue.
Mike Norman Economics: The whole world is short dollars!
Wednesday, November 30, 2011
The whole world is short dollars!
Today, like so many times in the past three years, we see the Fed stepping in and providing dollar liquidity to the world's central banks.
How many times do we have to see this?
The whole world is short dollars.
Let's face it...without the Fed’s intervention the dollar would soar to levels that no one would believe. It would restore American purchasing power, lower inflationary pressures, improve our real terms of trade and by so doing, raise our standard of living.
But what does the Fed do instead?
It “sells” the dollar on the cheap, to central banks that have every capability to sell their own currencies to provide dollar funding for their own, domestic needs.
Scandalous!!
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