• 177 days Will The ECB Continue To Hike Rates?
  • 177 days Forbes: Aramco Remains Largest Company In The Middle East
  • 179 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 579 days Could Crypto Overtake Traditional Investment?
  • 584 days Americans Still Quitting Jobs At Record Pace
  • 586 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 589 days Is The Dollar Too Strong?
  • 589 days Big Tech Disappoints Investors on Earnings Calls
  • 590 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 592 days China Is Quietly Trying To Distance Itself From Russia
  • 592 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 596 days Crypto Investors Won Big In 2021
  • 596 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 597 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 599 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 600 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 603 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 604 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 604 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 606 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Abject Failure

The Financial Markets are setting up to overwhelm the Policymakers in short order this August in this observer's opinion.

Dislocations have become most untenable over the course of 2004 as the latest round of excess liquidity, stuffed into the system ahead of the Federal Reserve's "Tightening Lite" campaign; certainly isn't yielding Foie Gras.

Instead, it appears to have brought about yet another unwelcome side-effect akin to having binged upon far too many Olestra based substitutes. Digestive problems, cramps and urgency are symptomatic of "the Invisible Hand's Substitute."

Contrary to Mr. Bernanke, Chairman Greenspan, and Board of Governors at the Federal Reserve... little remains ""Under very good control."

Under Chairman Greenspan's lofty misplaced rationale, the ebb and flow of current monetary policy appears to center around the following:

"GDP falling faster than Debt" or "Debt increasing faster than GDP"

Choose your poison carefully Chairman Greenspan as the ending is precisely the same.

Abstract statistical aggregates matter very little to "Larry lawnmower and Judy java." They recognize the simple truths within their financial sphere.

Things they need cost more.

Alan Greenspan is not totally oblivious to the realities of America's majority, although his loyalties clearly lay elsewhere. Pontificating hedonically fudged economic indicators is no substitute for the pocketbook reality indicator.

Health-care costs are rising 300% faster than wages. Explaining away the impact upon the "Real Economy's" participants is quickly becoming far less palatable to America's Working Class. I use that term very loosely to include all Americans not feeding at the top tier of first abuser privilege granted to those with immediate access to Chairman Greenspan's "Liquidity Trough."

The CONfidence game is losing its grip. One doesn't need a rapidly escalating College education, in dollar terms, to deduce the obvious.

Consumer CONfidence reporting has constantly shifted blame away from cause and towards the ill effect assumed by the American Public. The great irony here is that although "Gloom" may accurately describe the collective mood moving throughout the balance of 2004, the infertile egg is somehow held accountable for the chicken's promiscuous malaise.

Cutting Social Security benefits, sending tertiary jobs overseas, re-jiggering pension benefits while piling on Federal Debt and raiding already under funded future liabilities in order to remain solvent within the confines of the federal budget ceiling... yes, this adds up to a rather amazing miracle in Enron-esque accounting irregularities.

Debt is deflationary, regardless of how it is addressed. It would be best to begin to prepare now, the ending is out there and it may well be much closer than most realize.

Back to homepage

Leave a comment

Leave a comment