Wednesday, November 30, 2011

Unprecedented Coordinated Central Bank Interventions Stoke Stock Rally

Whisper rumors in the financial markets suggest that a major European bank was on the verge of collapse while we in the US were asleep last night. This was a massive coordinated intervention today by the central banks of China, Japan, Europe, Switzerland, and the United States. 37 major global banks' debt was downgraded yesterday by S&P shortly after the market closed.

Congressman Ron Paul released this statement this morning. I think he is absolutely correct in this. I couldn't have said it better if I was divinely inspired:

"Rather than calming markets, these arrangements should indicate just how frightened governments around the world are about the European financial crisis. Central banks are grasping at straws, hoping that flooding the world with money created out of thin air will somehow resolve a crisis caused by uncontrolled government spending and irresponsible debt issuance. Congress should not permit this type of open-ended commitment on the part of the Fed, a commitment which could easily run into the trillions of dollars. These dollar swaps are purely inflationary and will harm American consumers as much as any form of quantitative easing." -- Congressman Ron Paul

The Dow is up 400 points at this moment. Folks, do NOT misunderstand. This huge stock market rally today is a bet on INFLATION, not prosperity! This is an unprecedented intervention in the global financial markets by the central criminals -- also known as bankers -- as a panic move to stop what could be an imminent global banking meltdown.

This stock market rally is not due to expectations of renewed recovery. It is an oversized bet on massive inflation that will be the natural consequence of the excessive money creation and debt monetization that is being created.

Central banking and other monetary policy authorities are desperately trying to prevent what they see as certain calamity without such broad, coordinated, and extreme measures. What they fail to see in this short-sighted strategy is that with each succeeding threat of catastrophe, the magnitude and impact of it increases. They are just kicking the can down the road, with a bigger and more leaden can reappearing each time they do it. Don't be surprised if we see runs on banks before this crisis is resolved. They are already seeing bank runs (I've seen the photos) in parts of Europe right now just like the ones in the classic Jimmy Stewart movie, It's a Wonderful Life!

Sunday, November 27, 2011

Stocks Leap As MSM Reports Strong Black Friday

S&P was up nearly 20 points!

U.S. Labor Market - More European Than Ever

Stagnation in the U.S. job market!