Wednesday, February 20, 2013

20 Feb 2013

 Buying climaxes hitting their second peak on this run.  Must be getting close.
Long term is as overbought as it's gonna get.  Kudos Mr. Bernanke.
 Medium term continued its decline today.
Short term fell significantly today and broke out of its EKG-like pattern.
The politicians, Mr. Obama and some banksters / hedge fundsters seem willing to point to their success by looking at the S&P 500.  The bottom pane is the ratio of the S&P to Gasoline prices (ETF proxy isn't perfect).  Yeah, measured in infinitely dilutable paper dollars, you did a fantastic job.  Unfortunately, its declined in real purchasing power by about 50%, but oh yeah, we are "stimulating" our exports by having a weak dollar.  Only, we're not.  We are exporting our inflation by flooding the world with dollars.  I hope someone with a PHD explains this to me.

Kudos Mr. Bernanke, you enriched stockholders -a small percentage of the population that has excess savings (just by the definition of being able to invest)- and impoverished people whose budgets are dominated by food and gas costs.  Trickle up wealth.  Trickle down misery. The S&P has roughly doubled.  Gas prices have tripled.  Print money for your buddies in the government and corporations, but can't seem to print jobs or gasoline, huh?

Gotta love how the Federal Debt to GDP ratio is basically going vertical.  Is something wrong with the transmission?

Your narrow monetary base is certainly leaking to consumers via student loans, new car loans, new home loans.  Once everyone is in debt, who will the debt peddlers push more debt to?  How can it be paid back?  You know it won't.  Pulling forward demand only works with unlimited natural resources.

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