On PragCap, Surley Trader suggests the world markets are closely watching (and copying) the Nikkei. “Yen = Nikkei = expected inflation”, as he puts it. I couldn’t agree more.
Of much greater interest to me is the Edward Snowden story. Though it doesn’t tie directly to financial markets, I do see an associative correlation in the idea of central planning. We see it in the markets and we see it on the societal level – the desire for authority to control that which they can’t. It’s an urge as old as mankind.
As part of the same over-arching story, Matt Taibbi aptly addresses the Bradley Manning trial, pointing out that “If you can be punished for making public a crime, then the government doing the punishing is itself criminal.”
Charles Hugh Smith’s thoughts on the Surveillance State, as it is.
Here’s the Guardian’s account of how the story of Edward Snowden’s Big Reveal unfolded, along with a video interview. One of the most influential books on my thinking is the Gulag Archipelago, which I read in my early 20’s. Snowden’s comments at 7.30-ish are exactly in line with how Stalin oppressed Soviets, and it is the scenario that I believe is so worrisome.
From Zero Hedge, commentary on the Office of Debt Management quarterly report, which touches on a wide range of interesting topics, including fixed income ETF’s, Algo trading of Treasuries, and HFT impact on the Treasury market.
From FTAlphaville, the marginal cost of producing a barrel of oil will be near $100 next year for non-OPEC producers.
From NYT, Edward Conrad’s take on the purpose of fabulous wealth.
From PragCap, unemployment in Spain now tops that of the U.S… during the Great Depression.
From Marketwatch, Chicago PMI registered its lowest reading since September of 2009.
I don’t buy it, but at Daily Beast Daniel Gross makes the case that the U.S. is in better shape than anywhere in the world.
In John Hussman’s latest, he notes that his 10 year projection for equity return ranks in the bottom 1% of the last century. I think he disagrees with Daniel Gross.
From TED, Michael Norton suggests money CAN buy happiness. So long as you give it away:
Recently (and already infamously), Ben Bernanke asserted that “gold is not money.”
The markets speak in actions not words, and the markets are making pretty clear what they think of that assertion. This is a chart of the last 6 months, Gold vs. Euro vs. US Dollar. The Dollar and Euro are measured against one another (along with a basket that involves other Fiat currencies). Note that the USD (after a pronounced year-long slide) attempted to bottom and rally… rising support, only to break to the downside last week. As the Dollar rallied, the Euro has been steadily declining. But, even with the Dollar’s fall last week, the Euro has been unable to punch through upside resistance. How has gold handled it?
Which of the three would you like to have determining your purchasing power as “money”?
Ahhh… Uncle Ben. Stick to making rice.