Crap And Trade
Stocks soared over 200 points up today (based on the G20 meeting). I believe the Congressional Healthcare bill also pushed stocks up, as this will be more stimulus to the economy. This continued the high volatility that I expect will mean that people are getting nervous over the height of stock prices. I’m still waiting to short this market.
Bonds moved sideways.
The Dollar fell over 1 1/2 cents today – directly attributable to the Healthcare bill passing.
Gold (ALLTIME HIGH TODAY), Oil, gasoline all went up – directly attributable to the Healthcare bill passing.
In the news today…..
The G20 – had a meeting over the weekend, and said that stimulus should continue to be inserted into all the economies as everything is still fragile. Naturally, the world’s economy is made up of individual nations, and the G20 can spout out anything it wants to, but each nation will make its own decision based on its own self interest.
China’s Premier – told Obama that the US must have a “reasonable” deficit. The Chinese are concerned that their US debt holdings will be valued much less in the future as the US approaches inflation. Naturally China knows all about this as their monetary base is increasing at 26%/year right now. Also, as the US Dollar fall, and as the Chinese currency is tied to the US Dollar, the Chinese currency is falling against all its neighbors currencies and China’s exports are booming accordingly in Asia. This is very complex, but the Chinese are not stupid, and the Premier’s statement was dead serious. The US administration, on the other hand, will walk a very narrow plank, and continue to devalue the US Dollar right up to the point that China won’t buy any more debt. We’re not there yet, and this week we are selling $80B in new debt – let’s see who buys it.
Congress passed Healthcare – and this would add $1.1TRILLION to our deficit. How much can the US economy take? My opinion is that it can’t take this additional $1.1TRILLION without a very high inflation to pay for it with weak Dollars. It would push us over the edge. Now we await the Senate to see what the Democrats there will do. Speaking of healthcare, here are a couple of questions for you to answer: Is healthcare a right in the US? Is the healthcare bill Constitutional?
Tonight’s Dinner Conversation……
Goldman Sachs are a bunch of scumbags – I’ve talked a lot about their past behavior to prove that point. Here is the latest US Bubble that will happen, and as with all the past Bubbles, Goldman Sachs is right at the middle of the action. It’s called “Cap and Trade” in the Congress – and surrounded by all those administration scumbags.
How does it work? Like this. A company is allocated a certain amount of CO2 that it can emit into the atmosphere, and anything beyond that amount it needs to purchase certificates (sold by companies underutilizing their CO2 allocation). So where are all these transactions of certificate sales going to take place? On a new exchange, and Goldman Sachs is one of the owners (of course). Goldman is one of the biggest political contributors to the Democratic party, and is pushing hard for Cap and Trade.
Naturally, all shit flows downhill, so the price for this scam will end up with the consumer – that’s you and me. Consider this a gift from the government – and you should – and consider it a new tax. Your energy bills should increase SIGNIFICANTLY when this takes effect.
What’s you opinion of Cap and Trade?
Here are the last numbers for today:
Dow Jones 30 Industrial – 10,227 (up 204 points)
10 Year Treasury Bond – 3.49% (down 0.02%)
Euro – $1.4996
Gold – $1103 (up $8)
Oil – $79.30 (up $1.87)
Gasoline – $1.98 (up $0.06)