1.The Treasury will buy $850 to $900 billion of securities through June, or about $75 billion of Treasuries a month. Said the New York Fed. Not all the purchases will be in Treasuries. The Fed will buy $600 billion of Treasuries. On this news, the dollar sank to a nine-month low vs. the euro and the Dollar Index sank to a new low for the move. The Debt bubble continues to grow. The markets rise as cash runs for inflation cover. Some would call this “demand pull inflation”
2.The US will never pay off its debts. The US will renege on its debts via the Fed way, by devaluing the dollar through inflation. When the crap hits the fan, the current Washington bunglers will be long out of office and reading about their stupidities in nursing homes.
3.Millions of words are written every month about the US economy and the world economy. Some of it is true, but a lot of it is pure bunk . All economics can be reduced to one sentence. That sentence is, "FOLLOW THE MONEY."
4.In our studies of the stock market and investing, we're really just following the flow of funds. The stock market is a weighing machine. The stock market gathers together all the knowledge, the dreams, the ambitions, the hopes, and the fears of tens of millions of investors. Each minute, each hour, the stock market represents an accumulation of what everybody knows about anything and everything.
5.This brings to the stock market a mysterious and marvelous power. It's the nearest thing we have to a crystal ball. But it's a cloudy crystal ball, and it's not easy to read.
6.Two Headlines in the WSJ today. "Food Sellers Grit Teeth, Raise Prices. Packagers and Supermarkets start to pass along rising costs, even as consumer pinch pennies."
and "Insurer WellPoint Sees Costs Rise." It;s beginning to happen. The rise in prices of raw materials and commodities is starting to affect costs. Some people call this "Cost push inflation".
7.From Sotheby's and Christies auction catalogues. The prices being paid for certain items are incredible. Most of the hot auctions take place in Hong Kong or Geneva. A pink Diamond is up for sale at Sotheby's for $16 to $20 million. Top-quality jade is always a wanted item in China, and the prices being paid are mind-blowing. A simple bangle is up for auction -- price: over a million. At Sotheby's a Modigliani nude just sold for a record $68.9 million. Paper currencies are starting to lose their attraction.
8.Under the new health care bill -- did you know that all real estate transactions will be subject to a 3.8% Sales Tax? The bulk of these new taxes don't kick in until 2013 (presumably after Obama's re-election). Oh, you weren't aware this was in the Obamacare bill? Guess what, you aren't alone.
9.The oldest, shortest words – “yes” and “no” – are those which require the most thought. - Pythagoras
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