Monday, May 30, 2011

The Peanut Gallery

Statements, comments and forecasts that have no substance, but just might turn out to be relevant.

1.Donald Trump is out of it and there is a huge sigh of relief from the peanut gallery (yes, even from here). The Republicans and the Tea Party don't appear to have a creditable candidate who is not in the buffoon type mode. Looks like nobody wants the job.

2.Iran, North Korea and Pakistan are co-operating in the production of ballistic missiles. Apparently China is facilitating the sanctions busting. looks like China will stop at nothing and nothing will stop China in its pot stirring charge for world leadership.

3.In spite of forecasts to the contrary, gold the only honest currency, is holding its own above the 1500 mark. Reports of the early demise of silver appear to have been grossly exaggerated. Apparently more silver has been shorted than actually exists. I would hate to be caught in a short squeeze on the metal.

4.The real unemployment rate in the US is running at about 16%. The official name for this rate is the U-6. The attempts by the administration to hide the truth of this figure from the public will backfire if employment does not improve. The peanut gallery does not believe the employment stats will improve in the near future. 

5.Barack Obama can pose as many times as he wants as "The man who shot Osama BL". The next election will be a vote on his leadership in one field only......Its the economy, stupid! Ask Bush senior.

6.There is no such thing as the arab spring. What we really have here is the collapse of a group of poor countries unable to compete economically and the west (the bankrupt west, that is...) rushing to give aid before total bankruptcy takes hold. They call it money for democracy. What a load of hogwash.

7. As regards the "arab spring", George Friedman of Stratfor says "not every demonstration is an uprising, not every uprising is a revolution and not every revolution leads to democracy". Smart man.

8.The only way to repay US Debt is to continue to allow the USD to devalue. Note that US equity markets rise when the dollar falls and vica versa.

9.Look for calls for a national unity government in Israel, come September. Expect a lot of noise and  possibly a new intifada. As for "democracy".... a new code word to fool those that believe evil does not exist and to sponge on central bank printing machines while naive Infidels in the US sprout intellectualism.

10.Last word from the peanut gallery. A word of advice to the world of Islam. It would be a grave mistake to think that all Americans are naive. It would be the final fatal mistake.

Anticipate opportunities and problems. An ounce of prevention is worth a pound of cure. Thats a return of sixteen to one! - Larry Malinowski, PH.D.

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