Something to Believe In

Posted on April 19, 2011 by MN Gordon

Something to Believe In

“Congress is going to have to raise the debt limit,” said Treasury Secretary Timothy Geithner on Sunday’s Meet the Press.

Poor Timothy Geithner.  Aside from the President he must have the worst job in the world.  What could be worse than presiding over the world’s reserve currency at just the moment it blows up?

No doubt, Geithner’s fighting an uphill battle.  His number one product – the U.S. Dollar – has been diluted down like an over breaded meatloaf.  Both its quality and reputation have been compromised by years of moronic fiscal and monetary policy.

On the fiscal side, the government’s run up a $14 trillion debt.  On the monetary side, the Federal Reserve’s artificially suppressed the cost of money and, if you can believe it, they’ve loaned out trillions of dollars they never had to begin with.

Now, after years and years of pushing the tab out into the future, the bill’s due.  In fact, according to Geithner the government will reach its $14.3 trillion debt limit by May 16.  What’s more, the Congressional fight to raise the debt limit may last longer than the money does. Continue reading →

Posted in Government Debt, MN Gordon | Tagged , , , , | Leave a comment

How to Time the Market

Posted on April 15, 2011 by MN Gordon

Stocks may finally be topping out.  Or, perhaps, they are just consolidating for their next leg up.  How you see it depends on if you are a bull or a bear.  Here’s a look at recent market action…

After trading flat on Monday the DOW dropped 117 points on Tuesday.  Then, on Wednesday, the DOW was practically flat…up just 7 points.  Yesterday, the DOW picked up 14 more.

Do you see how it works? Stocks go down one day.  Then they go up the next.  Stocks go up one day.  Then they go down the next.  Other times stocks go up, before they go up some more.  Except for when stocks go down, after they’ve already gone down.

If you stare at a stock market index chart over time you can see movements that appear to repeat.  Some market technicians call these waves.  And if you stare long enough you can actually see wave patterns.  When you zoom into a wave pattern you can even see wave patterns within wave patterns.  These wave patterns all appear remarkably predictable…down, up…up, down…just before the moment they change.

Do you get what we are talking about?  What we mean is timing the stock market is a fool’s endeavor. Continue reading →

Posted in MN Gordon, Stock Market | Tagged , , | Leave a comment

The Powers of Nature

Posted on April 12, 2011 by MN Gordon

We greeted the news Friday night with the lethargic disappointment that comes with a second helping of cheese cake.  We’d longed for a government shutdown…and to see the army of beltway administrators without a purpose in life come Monday.  Instead we got what President Obama called “the biggest annual spending cut in history.”

We’re not sure what he means by “biggest.”  A quick back of the napkin calculation tells us the $38 billion spending cut amounts to about 1 percent of the estimated $3.8 trillion in total 2011 fiscal year spending.  In other words, it’s a sham.

Former U.S. Comptroller General David Walker recently remarked that the House budget debate over such paltry cuts was “like arguing about the bar tab on the Titanic.”  No doubt, the ship of state has struck an iceberg and is rapidly taking on seawater.  In fact, the entire hull should crack and buckle sometime before May 16th.

That’s when, according to Treasury Secretary Timothy Geithner, the federal government runs out of money for good unless the Congressional debt ceiling is raised.  In a January 6, 2011 letter to Congress, Geithner wrote… Continue reading →

Posted in MN Gordon, Politics | Tagged , , , , , | Leave a comment

Use the Dollar or Else

Posted on April 8, 2011 by MN Gordon

It really is a wild and wacky world out there, ain’t it?  Dirt bags like Charlie Sheen and Barney Frank make public spectacles of themselves on a regular basis and everyone loves them for it.  The more crude and shocking they are the more their bull market soars.

Hollywood burnouts, political buffoons…people can’t seem to get enough of them.  Still, that’s nothing.  Their behaving like jackasses in public is almost quaint in comparison to other public affronts we’re all subjected to.  What we mean is when you take your sights off the comics and the clowns, and reposition the crosshairs on money, a whole new world of absurdities comes to focus.

For example, the bright and enlightened minds at the Federal Reserve believe they can make the world a more prosperous place by creating gobs of money from thin air.  They’re hell bent on proving they’re right even if it ruins the entire planet.  Right now, as we speak, they have bet three generations of wealth on the idea that a sound economy can be restored by borrowing massive amounts of dollars into existence.

What’s more, here within the confines of the United States, the Fed has a unique monopoly.  They’re the exclusive stewards of the nation’s currency…sole issuers of its legal tender.  Continue reading →

Posted in Lew Rockwell, Politics | Tagged , , , , , | Leave a comment