Copenhagen Farce
Stocks fell on the solidly gaining Dollar. Bonds gained (lower interest rates) on the same news. The Dollar moved through some technical levels and gained dramatically against the Euro – over one cent. We haven’t seen these levels of the Dollar since the summer – hurrah as I am in Europe right now, spending Dollars.
Gold fell $30, and this makes my heart warm as I want to buy in at lower levels. We are just about at the first buying point ($1100), but I’m hoping for a much lower gold price ($1000) buy a ton of gold.
Oil speculators are working hard to drive the price of oil up.
In the news today…..
CBRE Commercial Real Estate – is having a tough time in 2009. In 2008, it sold $50B worth of commercial real estate. This year it has sold $3B worth. This is a dramatic drop, and naturally negatively affects its commissions. A good example of why is the “most expensive property ever sold in the world” in New York City – this project sold for $4.5B just before the collapse in property prices. Today (less than 2 years later) that same property is worth half of that amount. The buyer has written off all its equity. They obtained an 80% loan, and the lenders are worried about their capital as the assets are now worth less than their mortgages.
Copenhagen Climate Summit – is a real farce. The US has stepped up by offering $100B plan to give 3rd World Countries this money to help with the climate. But, the US won’t sign anything unless China steps up to measurable CO2 reductions. The Chinese don’t like being told what to do, and are being stubborn (Thank God). This is the biggest joke and fraud perpetrated on the world. A UK paper (The Guardian) is running a story about the UK Climate study performed by a UK University – they falsified the Russian climate temperatures to make the results conform to their preconceived ideas – a complete fraud. So, who is believing these lies? The UN for one. But, more importantly, the Obama Administration is believing it – driven by the billions that Gore intends to earn on the CO2 fraud of Cap and Trade.
President Obama – is telling the Copenhagen Climate Summit delegates to accept an accord – even as it is imperfect and without any US commitments – because an imperfect agreement is better than no agreement. What a lie!!!!!!! Where’s Congressman Wilson when you need him (LIAR!!!, he said in Congress). An imperfect agreement is imperfect, and needs work – don’t sign it. Does this rhetoric from the President sound familiar? It’s the same thing he is saying about the Health Care Legislation. He says to sign a multi-Trillion-Dollar bill that doesn’t give coverage to 30 million people, reduces Medicare by $500B, and doesn’t reduce Health Care costs over time. It fails in ALL aspects of any health care legislation.
Greece is overhauling taxes – to fix its deficit spending problem. In a foreshadowing of what will happen in the US, Greece is “broadening its tax base” to solve its budget problem. Greece is full of tax evaders. Greeks hate to pay taxes, and will go to great lengths to hide their income and wealth to avoid taxes. The Greek government will fail in their tax revenue raising approach. The US could encourage a generation of tax avoiders too if it raises taxes too much. We already have a black market of underground workers who want “cash” to perform work.
Here are the last numbers for today:
Dow Jones 30 Industrial – 10,308 (down 133 points)
10 Year Treasury Bond – 3.49% (down 0.11%)
Euro – $1.4359
Gold – $1106 (down $30)
Oil – $74.12 (up $1.47)
Gasoline – $1.85 (down $0.03)