The markets are taking a beating this morning with European futures markets taking center stage over the weekend with huge declines. Our markets are going to open down more than 200 points, the dollar is rising sharply while the Euro falls, bonds are scrambling to new highs, oil is falling, gold reached another all-time high of $1927.40 before pulling back, silver surprisingly is lower, and unfortunately food commodities are holding steady in their orbit around planet inflation.
The Non-Manufacturing ISM is released at 10:00 Eastern this morning, we’ll report that inside of today’s Daily Thread. The rest of the week has very light data, the highlight of the week, of course – oh boy, can’t wait – is the President’s speech on jobs. UGH!
Every week the markets “wait” on another worthless speech – either from Wrong Way Bernanke, or from his minions, or from the central bank’s other lackey, Obama. Nothing they say can change the fact that their actions are disconnected from the impossible math reality. Here’s a quick lesson for the Haaarrrrvaaarrrdd and Crowlumbia crowd – for free, no megastudent loans necessary.
Prior to reaching the debt saturation point adding credit money into the economy works to create growth and jobs. After reaching the macroeconomic debt saturation point, however, adding credit money to the economy works as an anchor to REAL growth and destroys jobs.
What more do you need to know? The math at the saturation point is impossible – but now we’re way beyond the saturation point and the math is so far beyond impossible that there is simply no way, NO WAY, that our politicians can create the necessary change to right that impossible math while maintaining the status quo of having the central bankers in charge of creating our money. The central banker box that they created, their system of privately financing public debts, is going to come to an end – it must, the impossible math demands it. The zombies simply still don’t want to admit that they’re dead – zombies never do.
So puppet Obama will get up on stage and he’ll look pretty, he’ll have the teleprompters all loaded with his overlord’s smooth words, and he’ll stand up and deliver a speech that any non-thinking person can probably agree with. But for those who can actually ‘do’ math, they will realize that when a nation is saturated with debt, that creating large governmental make-work projects that the only “infrastructure” you’ll be left with is the paper chain of forever debt servicing and forever debt servitude.
What I’m saying is that any action he creates within the central banker paradigm will only add to the impossible math and make the underlying problem worse, not better. Sure, the government can hire 100 million people tomorrow, and you’ll see a huge tick up in employment, but your nation will only be that much deeper in debt when it’s time to make the payroll.
And no, taxing more from government workers isn’t the solution, it’s laughable. Watching the news has become a laughable comedy act, like last night watching some Congresswoman call for beating up the “overpaid” Postal employees. Like the employees are the reason the Post Office dug an $8.5 billion hole in just one year… yeah, let’s take everything away from the employees, tax them some more to boot, while devaluing their money and sending the cost of living to the moon. Oh yeah, that’s quite the economic plan.
Europe’s plan(s) is/are even more ridiculous, the math equally impossible. Just one look at the Greek 1 year says it all:
Again, no solution is possible until the paradigm that is the Central European Bank collapses – then real solutions will be aplenty.
Again with the free advice… send the central banking perpetrators to prison, take back the power to create money to Congress (the people’s representatives), end the process of creating national debt, separate special interest money from government, and unsaturated the saturated economy – I recommend following the procedures found within the outline of Freedom’s Vision, or some variant thereof that restores the natural rule of law.
Until then my forecast calls for major league “other events” and fluff unreal markets that expose themselves as such. Best of luck, we’re all going to need it as long as the crazies are running the asylum…