Nouriel Roubini, chairman of Roubini Global Economics, told CNBC, ECB bond buying will only buy time because the recession in the euro zone is getting deeper and how you stabilize the banking system and restore economic growth is still a very open question. Here is a direct link.
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Putting a small hedge on my longs, energy and precious metal stocks, has not been a good idea the last few days. What a bizarre state of affairs. A bad jobs number creates QE hysteria. Jobs created are mostly part time in the food, healthcare and professional services sectors while key manufacturing and construction sectors continue to shed jobs. Intel warns, Walmart warns, doesn’t mattter The Ben has a plan. Print, print, print….or in other words, crucify the middle class, make the elite whole.
Stepping back and looking at the larger picture it is all pretty clear, create inflation at any cost. The cost however, measured in unintended consequences, will be staggering and apparently not forseen by the ruling elite.
A check of the stock charts of any public weapons producer may provide a clue.
It is a Mad Mad World.
Sadly, the consequences were and are intended. The ruling elite know exactly what they are doing and they have an end game.
The “partisans” are clearly arming themselves. For what, they are not yet exactly sure but as the inflationary depression takes a firm hold they will react. The unintended consequences I was speculating about are definetly not in the plan. Was Benito Mussolini’s summary execution in his plan?
When the comfortably entitled middle class ultimately and finally realize just how badly they have been had, they will react in the only way left to the desperate with nothing to lose. Check out what the desperate are doing in other parts of the world for a clue.
I sincerely hope that we never experience it, that somehow common sense will prevail and the capitalist system will be allowed to reboot and rebuild but evidence suggests otherwise.
For a month we have been waiting for a news event to trigger a break up or down out of the narrow, miserable trading range. Thursday brought “positive” news regarding new plans to deal with the European debt crisis. It was the kind of news we refer to in shorthand as pure BS. Or as Macbeth said: “It is a tale told by an idiot, full of sound and fury, signifying nothing.”