In 1982, Wendy's came out with a hit commercial Where's the Beef? I find myself asking that whenever I hear about a real bottom in our economy...I'll come back to this.
Now, I'll share a quick technical analysis on the daily EURUSD chart:
TD_sequential 9 has signaled a turn on the end of the day this past Wednesday. Demarker divergence is signalling further USD strength with support at 1.3966. I'd buy USD and aim to 1.4123.
The fundamentals scream dollar strength. We are deflation mode for now. The end of QE2 is being priced in and the S&P500 has decided to take a downward trend for the past 6 weeks. The unemployment rate is at 9.1% and that's assuming the BLS is legit and not stuffing the birth/death rate model.
What's next, I will have to credit to John Mauldin. If you don't get newsletters from him then do so now. He is very connected, balanced, and experienced and the only economic analyst I follow.What is shared by Mr. Mauldin is originally from economist Kash Mansori at http://streetlightblog.blogspot.com/2011/06/betting-on-pigs.html It is about default insurance exposure of US and European financial firms to PIG's pending death default. Here's the most important takeaway quote from the article, "In essence, European firms have been betting that a PIG default will happen sooner rather than later, while US firms have been betting that default would happen later or not at all." Lovely.
Please read this article at Zerohedge about a $600 billion stealth bailout of foreign banks by the FED before going on.
Done? Are you angry or skeptical? It is fair to be either, but you'll only be one for only so long. According to the Zerohedge article, the wool was pulled over our eyes again with QE2 and QE3 is a certainty. It explains PIMCO's treasury short. Expect dollar strength in the short run and dollar weakness in the long run when QE3 is announced.
A recent paradigm I received in discussion with an uncle of mine was over how the world's economy will be fine because of financial relativity. According to him, if everyone inflates equally and in coordination, everything is okay and the rest is numerical illusion and fear. That might be theoretically correct, but in a time of persistent unemployment, depressed housing asset values, stock market manipulation, declarative/distractive media, predatory private educational loans, too-big-to-fail banks and reckless greed on a global level, I have to ask first, where's the beef? The numbers are going to end in blood or revolutions. Wendy's may have asked "where's the beef"? but it is Notorious BIG who defined "what's beef"
I'll leave the pertinent lyrics of here [with my explanation in brackets]:
What's beef? Beef is when you need two gats [wars] to go to sleep
Beef is when your moms ain't[isn't] safe up in the streets
Beef is when I see you
Guaranteed to be an ICU [IOU=T-bill=risk free rate], one more time [QE3,4,5,6,7?]
What's beef? Beef is when you make your enemies start your Jeep [export your manufacturing base to foreign countries]
Beef is when you roll no less than thirty deep [$30 mil.from hyperinflation]
And yes, I just ended my financial blog article with rap lyrics. I'll leave you with this article to ponder about.
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Now, I'll share a quick technical analysis on the daily EURUSD chart:
TD_sequential 9 has signaled a turn on the end of the day this past Wednesday. Demarker divergence is signalling further USD strength with support at 1.3966. I'd buy USD and aim to 1.4123.
The fundamentals scream dollar strength. We are deflation mode for now. The end of QE2 is being priced in and the S&P500 has decided to take a downward trend for the past 6 weeks. The unemployment rate is at 9.1% and that's assuming the BLS is legit and not stuffing the birth/death rate model.
What's next, I will have to credit to John Mauldin. If you don't get newsletters from him then do so now. He is very connected, balanced, and experienced and the only economic analyst I follow.What is shared by Mr. Mauldin is originally from economist Kash Mansori at http://streetlightblog.blogspot.com/2011/06/betting-on-pigs.html It is about default insurance exposure of US and European financial firms to PIG's pending death default. Here's the most important takeaway quote from the article, "In essence, European firms have been betting that a PIG default will happen sooner rather than later, while US firms have been betting that default would happen later or not at all." Lovely.
Please read this article at Zerohedge about a $600 billion stealth bailout of foreign banks by the FED before going on.
Done? Are you angry or skeptical? It is fair to be either, but you'll only be one for only so long. According to the Zerohedge article, the wool was pulled over our eyes again with QE2 and QE3 is a certainty. It explains PIMCO's treasury short. Expect dollar strength in the short run and dollar weakness in the long run when QE3 is announced.
A recent paradigm I received in discussion with an uncle of mine was over how the world's economy will be fine because of financial relativity. According to him, if everyone inflates equally and in coordination, everything is okay and the rest is numerical illusion and fear. That might be theoretically correct, but in a time of persistent unemployment, depressed housing asset values, stock market manipulation, declarative/distractive media, predatory private educational loans, too-big-to-fail banks and reckless greed on a global level, I have to ask first, where's the beef? The numbers are going to end in blood or revolutions. Wendy's may have asked "where's the beef"? but it is Notorious BIG who defined "what's beef"
I'll leave the pertinent lyrics of here [with my explanation in brackets]:
What's beef? Beef is when you need two gats [wars] to go to sleep
Beef is when your moms ain't[isn't] safe up in the streets
Beef is when I see you
Guaranteed to be an ICU [IOU=T-bill=risk free rate], one more time [QE3,4,5,6,7?]
What's beef? Beef is when you make your enemies start your Jeep [export your manufacturing base to foreign countries]
Beef is when you roll no less than thirty deep [$30 mil.from hyperinflation]
And yes, I just ended my financial blog article with rap lyrics. I'll leave you with this article to ponder about.
Share |
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