Remember the announcement at Woodstock over 40 years ago? Apparently there was some bad LSD getting passed around so the announcement was made at center stage to 'don't eat the brown acid'. Why do I bring this up? The job loss number was released on Friday morning and it was half a million plus. That was 'worse than expected' and the stock market headed south. Bloomberg television always brings on my favorite comedian, Christine Romer (White Economic Advisor) to chat about the number. As usual, Ms. Romer had me in stitches babbling on and on about how the number really wasn't so bad and certainly not as bad as the numbers released in the previous administration. You know the one. Bush was responsible for everything bad and poor Obama has been trying to right the ship ever since getting his key to the Oval Office. Ms. Romer explained that it could be worse but this was typical of any economic recovery. She was grinning and cooing and selling the 'recovery' story like Zig Ziglar selling condoms at the South Carolina Governor's Mansion. However, instead of the usual brain dead talking head media pretties they have on the set they happened to have Kenneth Langone (former co-founder of Home Depot) sitting there. He didn't waste time. He launched right into this cock-a-mamee nonsense and told this poor disseminator of disingenuousness that if the leaders of public companies intentionally misled the public the regulator bodies would pounce. There was of course more but I have to say it is nice that I am beginning to see other people swim over to the island of Barry and join me in embracing the truth. Yes, unemployment is rising. Job losses are growing. The government is still lying about everything. Brothers and Sisters, we are all alone. Our country has abandoned us and has sided with the central bank who now pulls their strings. We must ignore the government talkers as they are not capable of addressing the truth. They think they can lie and print their way out of every bad situation.
Timmy Geithner also kills me. He was babbling about some insanity concerning our government's desire to keep the dollar strong. Excuse me a moment - I'm still laughing about that one. Whew! What a funny guy. He really should put one of those arrows on his head like Steve Martin used to use when he used to be funny. If you listen closely when Geithner and Romer speak, you can almost hear the entire world laughing at their buffoonery. So, all I can tell you is 'don't eat the brown acid'.
If you want to believe an economic recovery is underway, then God bless you. Everyone should always strive to be as positive as possible. However, printing money and giving it to broke bankers always weakens the dollar and destroys the economy. This is why the Chinese are so mad with the Fed. People like Geithner are brown acid pushers. Economic recovery? Please. Rail car usage is down 20% from a year ago. If we produce and consume, we have to ship the stuff we make and consume. The chart below is the Baltic Dry Index. This index tracks the price charged to ship dry goods like coal, copper, wheat, and so on around the world. As you can see, one of the lines is the BDI and the other is the Dow. They follow each other very closely and the BDI is now in a steep dive. The Dow is either hesitating in its current rally or showing signs of rolling over. If the BDI keeps diving, it is almost inconceivable that the Dow could keep going up. Beware - reality is telling us something far different than what governmental propaganda puppets are selling.
5 year - Dow in candlestick, BDI in green (weekly)
Chart courtesy StockCharts.com
No comments:
Post a Comment