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Thursday, February 21, 2013

The more people Hope a line moves, the more people Accept that it does not

We haven't paid much attention to finance news in the last week or so.. Too busy writing on things of consequence we suppose..  But its a blistery cold, overcast day in our neck of the woods, so lets take a gander at what's going on...

Let's see... Reuters is writing "More Americans than expected filed new claims for jobless aid last week and consumer prices were flat in January, supporting the argument for the Federal Reserve to maintain its very accommodative monetary policy stance"

Well let's break that down:

1) Should be no surprise to anyone with a brain that joblessness would rise considering Congress and the President have done absolutely Nothing... not even a single piece of symbolic legislation to at least show people one party vs the other cares...

2)  Of course consumption was flat..  What do you expect people who have no nest egg and a mountain of debts to spend with--  wampum?

3)  The conclusion Reuters draws is absolute BS but one should never be surprised by the solutions corporate media believe in to solve the nation's woes.
Currently between QE 3 and 4, $85 billion/month ($1 Trillion/year)is being spent to prop the stock market and push forward the big Lie that ultimately this will lead to increased hiring and economic stability...

Well it hasn't..  So, what to do... Perhaps try a different strategy?

Not if the following Yahoo Financial headline is an indicator:

"QE5 Is Right Around the Corner as Recession Risk Rises"

Could have sworn we are in one... as in a 6year and counting one..   We know.. the 'experts' said it ended many years ago...  Guess all those millions up people desperately hunting for work and those other millions so despondent they quit looking are all 'Debby Downers', yes?

What's the saying -- Chin up and join the cheer, or take it outside...
Then there's all these empty threats by the President, Congress and the Pentagon of job-losses galore if agreement isn't met on budgetary cuts by March 1st..

How lovely.. Oh yes, how does the story of "Peter and the Wolf" go?

Its so soap-operatic in falsity, it stirs up the gastric juices to the throat... We all know what will happen next..  No need for a Bachelor's Degree in Nostradamus Studies to figure it out..

Some "magic" last-minute agreement will be met by agreeing to just enough to avoid all the economic cuts baked into the cake if nothing is done by March 1st..  This will of course kick the can and delay substantive budgetary talks for another few months (the dead of summer when no one pays attention?)..

And the politicians will pat themselves on their backs and butts.. and the people will rejoice.. and doves will appear from the rainbow glistened sky...
Its funny.. politicians run for office promising they will do X and Y and will never compromise on Z...  If all of them had to take truth serum during a campaign, we think they'd say something like the following...

"I promise if (re)elected as your (fill in the blank) that I will take all my beliefs and values and put them aside so that watered-down legislation is passed which benefit very few..  I also promise that my decisions will be made based on political expediency and a desire to never take any position or vote in any way to alienate independent voters--  They are Far more important than my core base."

Isn't Truth just refreshing?

Let's see.. what else...
Oh here's something missed from last week since it was reported conveniently on Friday evening at 4:45p -- Facebook received tax breaks from the government... Multi-billion dollars in breaks:

"It hasn’t drawn much attention, but Facebook’s first annual earnings report contains an accounting gem: a multibillion-dollar tax deduction for the cost of executive stock options and share awards.

Even though Facebook (FB) reported $1.1 billion in pre-tax profits from U.S. operations in 2012, it will probably pay zero federal and state taxes—and even receive a federal tax refund of about $429 million—according to a Feb. 14 statement from Citizens for Tax Justice." -- Bloomberg, Feb 15th

Gotta love it..  We know..  we know..  "Life is short... Not going to get stressed or tense over it... No going to let it ruin my day"

Yep..  you're Marvelous...
OK so..hmm.. what else is going on today?

The Dow is down today...  good..    13,900 as of 10a.. 100pts below that nauseating 14k mark..  nice..  We'd much prefer seeing the Dow at around 7500 which would accurately represent this nation's economic picture..  No worries--  we're patient

We know the Fed will never allow the natural gravity of real economics to tamper with their current manipulations, so it will ultimately come from elsewhere..

Maybe Greece finally getting some machismo or 'balls' and defaulting on their debt..  Then again their cowardly people seem to still think sporadic 24hr strikes will do the trick... been working brilliantly thus far hasn't it..
Or maybe Spain or Portugal... normally you'd think 21% unemployment (50% among young adults) would cause civil unrest and the provocation of civil war...  Don't know--  maybe the threat of a disruption to their soccer/football league La Liga if such action was taken is too scary a thought...

Could be Japan?  They're in such a horrific shape economically, they're devaluing their currency 3x as quickly as last year but we have a feeling the bigger fish will keep this guppy in line with the goal of a 'safe' and coordinated global currency devaluation.

Heck.. its getting to the point where we are almost rooting for North Korea!
Well.. no, not really... but then again..  This fake 'recovery' has got to stop!!

One of two things need to occur-- either legislation and other real Action is taken to create jobs and allow people the means and ability to lead productive lives, or things need to get much worse Specifically so the lazy masses wake up from their couch-potato stupor and Demand action...

Right now, its merely one long continuous holding pattern...  One long continuous sit-down in the figurative airplane as it can't decide whether to taxi or or head back to the terminal...

And if there's one thing about people-- they really do put up with a lot of nonsense as long as there's the mere hope of some movement. (complimentary pretzel bags don't hurt either)