Tuesday, March 15, 2011

15 March 2011

TSV outside of 1st std.  Moving average catching up.

Hold-short at 81%.  Reasonable spot for a short-term bounce.
Hold short at 61% in the medium term.  Up there, but not too high to be strange.

Nikkei up 4.92% on more central banking (BOJ) monetary creation.  When will people lose all faith in a system that allows a certain entity to create as much "money" as they want while everyone else has to work for that "money"?  It is fun and feels safe while it lasts and the party has been good, but eventually this system will have to be buried because it the main tool does not represent anything productive - like labor.  And no, I don't have the answer - gold has warts too.

"The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."
-- Friedrich Hayek, "The Fatal Conceit"

"To combat depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about; because we are suffering from a misdirection or production, we want to create further misdirection- a procedure which can only lead to a much more severe crisis as soon as the credit expansion comes to an end."
-- Fredrich Hayek, 1933

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