InvestingAdvicebyGeorge – I was watching Speaker of the House John Boehner speak today on Bloomberg TV (yes I have the TV on while I trade but the sound is off until I see something that is newsworthy). Speaker Boehner made the same old pitch about how the Republicans have out plans on the table and the Democrats have done nothing. I watched as his entourage climbed over each other to say something to the media and it hit me hard. This is July 28, 2011. In one year we will be in full reelection mode. How much money would one of these congressmen have to raise to get some prime time face time? I would guess it would be quite a bit. Meanwhile the media dutifully reports every sneeze that one of these elected officials makes in the name of unbiased reporting. The job of the media is to scare the masses so they will stay tuned while the media peddles their soap products and toaster ovens. The congressmen can’t get enough of it. Free advertising! Next year the amount of time they have spent in front of the camera will cost them dearly. Now they get it for free.
So now we get down to it. Like it or not The United States is “Too Big to Fail.” I have been studying the possibility of a credit downgrade and I have come to the conclusion that it simply cannot and will not happen. S&P, Moody’s and Fitch want some face time too! Ask yourself this – Are the treasuries that the FOMC have been peddling for the last two years really “AAA” grade? Absolutely not. The reality is that S&P and the rest are still the same money grubbing spineless jellyfish they were when they were stamping the garbage CDO’s “AAA” in 2007. They are still the same clowns that have been stamping our treasuries “AAA.” Now they come out with an ultimatum that unless this deal by Congress is up to their lofty standards they will downgrade our credit rating. This is sheer arrogance or worse it is part of the charade that is being foisted on an ill educated public to scare them and keep them “tuned in.”
Ranting Andy: The Biggest Miss in U.S. History
July 29, 2011RANTINGANDY – C’mon guys (US Government), I really wanted to take a day off from writing. But you’re making it too easy for me, displaying levels of ineptitude that I rarely come across. Even my wife is saying “this country is getting so embarrassing, I’d be afraid to leave it and get laughed at by the rest of the world”. Fortunately, in our trip to the UK next week for GATA Gold Rush, we will find equally high levels of ineptitude, as the bankers and politicians in London certainly are giving those from New York and Washington a run for their money.
Today’s GDP report was probably the biggest miss versus “consensus” I have ever seen, following in the heels of a slew of worst-ever misses versus “consensus” across the board, from housing to construction activity to employment (remember the June employment report, 18,000 jobs versus the “consensus” 170,000?). Those creating the consensus are among the dumbest “economists” and “market strategists” in human history (a truly lofty title, by the way), and frankly I’ve always sensed these numbers were created with the help of the government, in order to assist in its propaganda strategy of MOPE, as Jim Sinclair calls it, or Management of Perspective Economics. In other words, to keep people thinking things are “improving”, ESPECIALLY if the numbers can BEAT CONSENSUS and thus suggest an upward accelerating trend (which of course the puppet media will report).
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