Week in review

Quote of the week

“Uncle Sam is not very bright; but at least he has very deep pockets…and a printing press in the basement.” – Bill Bonner

The Strong Dollar Illusion

by Peter Schiff

“Economists who now see American troubles spreading around the world are predicting that foreign central banks will ignore the gathering inflation threat and follow the Fed down the rate cutting path. Similarly, they argue that since the downturn began here, the U.S. recovery will likely be underway while the rest of world is still decelerating. These assumptions have prompted a rally in the dollar, a sell-off in gold, commodities and foreign stocks, and have cast doubts on the ability of foreign economies to ‘decouple’ from the United States. Investors should not take the bait.” more…

Unemployment Survival Guide

by The Mogambo Guru

“In short, the availability of money (the increase in the money supply) must come first if you are going to get systemic inflation in prices, and not the other way around, which you would think some hotshot economist from New York University would know!” more…

Who Started Cold War II?

by Patrick J. Buchanan

“The arrogant folly of the architects of U.S. post-Cold War policy is today on display. By bringing three ex-Soviet republics into NATO, we have moved the U.S. red line for war from the Elbe almost to within artillery range of the old Leningrad.” more…

Our War In Mexico

by Jim Scarantino

“Over 800 people have been killed in the state of Chihuahua so far this year as a war rages between rival Mexican drug factions. Some towns have been completely taken over by drug lord militias. In one town, police who didn’t go to work for the drug lords were beheaded. This week 11 people have been killed in Juarez, including a national sports figure.” more…

And now the numbers

DOW Jones Industrials – 11,628.06 (-31.84)
Wilshire 5000 – 13,185.26 (-86.62)
CSI 300 (China) – 2,404.93 (-42.69)
BSE 500 (India) – 5,570.47 (-135.05)
MICEX (Russia) – 1,374.69 (-85.51)
BOVESPA (Brazil) – 55,850.13 (+1606.10)
Gold/oz – 833.50 (+41.40)
Silver/oz – 13.59 (+ 0.66)
Copper/lb – 3.4595 (+0.145)
Oil/bbl (Brent) – 113.92 (+ 1.37)
Wheat/bu (CBT) – 8.905 (+0.4125)
Corn/bu – 6.065 (+ 0.57)
Rough Rice – 18.00 (+ 1.84)
Dollar/Euro – 1.4797 (+0.0103)
Yuan/Dollar – 6.8296 (-0.0359)
Yen/Dollar – 110.035 (- 0.47)
Dollar/Real – 0.616 (+0.0046)
3 Month Treasury – 1.69 (- 0.14)
2 Year Treasury – 2.40 (+ 0.02)
10 Year Treasury – 3.87 (+ 0.04)
30 Year Treasury – 4.47 (+ 0.01)
Fed Target Rate – 2.00 (UNCHG)
U.S. Public Debt – 9,618,645,199,394.08 (+25,304,820,443.70)

I went and saw I.O.U.S.A last night, a move about the exponential expansion in the federal government’s debt and its eventual bankruptcy, unless we do something about it that is. Of course that’s going to mean politicians will have to make hard, and most likely unpopular descisions. It still blows my mind that the Presidential candidates talk about universal healthcare. Like we could even begin to afford that given the current mess. (For the record I’m opposed to federalized just about anything including health care even it was affordable.) Anyway, either they (McCain and Obama) are idiots or they think the electorate is made of idiots. Maybe its a little from column ‘A’ and a little from column ‘B’….

The movie is worth seeing. It is pretty sobering, though I will never tire of hearing Ron Paul berate Federal Reserve Chairmen, and they put in a great clip, Paul says something like, “I can see that you didn’t take my previous advice and find a new line of employment.” Classic… Anyway go see the movie. It probably won’t change your life, but you’ll probably learn a few things.

Well, that’s it for this week. Have a fantastic weekend. Summer’s running out so you better get out there and soak it up.

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