Good Morning,
I am in the process of moving, so this will be an abbreviated update. Wednesday and possibly Thursday will be automated posts in order to create a daily comment thread.
This morning futures are significantly higher on news that a compromise has been reached that will extend the Bush era tax cuts. It will also extend the emergency unemployment benefits by an entire year, thus keeping any revolution at bay – temporarily, at least. The bottom line from my perspective is that it is yet another accelerating event in which no decision can be made to actually tackle our deficits. Quite the opposite, in fact this will hugely add to our deficits as the math of debt simply gets worse and worse as no adult is willing to tackle reality.
It is also a political ploy designed to make this an issue once again just in front of the 2012 elections – that’s why the tax cut extension was made to be 2 years in duration. The democrats would like to blame republicans, and visa versa of course. Reality is that they are both puppets of the central banks.
Naturally gold and oil are spiking to new highs – neither seeing any adults approaching, just can kicking.
There was a small movement in the McClellan Oscillator yesterday, so expect today’s move to be large. It’s likely a part of wave 5 up which is pushing bullish sentiment to extremes.
Hate to say it, but we look a lot like Zimbabwe at this point. Money printing galore, no adult decisions, rising equities, higher unemployment, all combined with record numbers of people on food stamps. While markets may go higher for awhile, you will see more and more real people unable to keep up with a false economy. Those profiting from this now will fall the hardest in the end.
Have a good week, I’ll be back up soon and will have more time to write once settled into our new place.