The markets should rise appreciably on Thursday and maybe even Friday.
After all, there is lots of money at risk for the Wall Street gang just prior to options expiration.
Then, the equities markets will crash a lot further than they already have.
But only after the retail fools have been fully taken advantage of.
Need help? You should(!)
Wednesday, June 15, 2011
Thursday, June 9, 2011
21st Century Deflation Lesson - Simplified
Poor economic growth comes from a lack of consumers in the world. Today, a pronounced lack of US consumers insures a terrible lack of worldwide consumers.
Which financial class is consuming enough to grow the US economy?
1. Relatively poor people in the US cannot consume because a large percentage do not have jobs. Give or take 50% of them.
2. The US middle class cannot consume because a significant percentage don't have jobs, and even worse, those who do have jobs are getting paid significantly less, especially in real terms, than they were prior to the 2008 melt down.
3. The relatively few wealthy do not feel wealthy because they earn 0% interest on their cash. Then, they are forced to take large risks, some of the risks involving currency exchange, and they use equities to try to survive... but then just lose wealth to the super-computers on Wall Street. Only some bankers and traders make money and those folks are no where near enough to grow an economy.
To make it even worse, and to reinforce the downward spiral, all the monopoly money that's been printed by the Fed for hoarding by the banks has risen dollar-based commodities (e.g., OIL trades in US dollars,) pissed off the entire world (since protectionism tends to do that,) and driven up selected consumer prices to insure none of the three economic classes consume an abundance of anything.
Lose, lose, lose. All three groups.
There is no economic growth without consumers. Ben B. sites international finance textbooks during speeches in Atlanta, but he probably forgot to read his freshman economics textbook as an undergraduate.
Which financial class is consuming enough to grow the US economy?
1. Relatively poor people in the US cannot consume because a large percentage do not have jobs. Give or take 50% of them.
2. The US middle class cannot consume because a significant percentage don't have jobs, and even worse, those who do have jobs are getting paid significantly less, especially in real terms, than they were prior to the 2008 melt down.
3. The relatively few wealthy do not feel wealthy because they earn 0% interest on their cash. Then, they are forced to take large risks, some of the risks involving currency exchange, and they use equities to try to survive... but then just lose wealth to the super-computers on Wall Street. Only some bankers and traders make money and those folks are no where near enough to grow an economy.
To make it even worse, and to reinforce the downward spiral, all the monopoly money that's been printed by the Fed for hoarding by the banks has risen dollar-based commodities (e.g., OIL trades in US dollars,) pissed off the entire world (since protectionism tends to do that,) and driven up selected consumer prices to insure none of the three economic classes consume an abundance of anything.
Lose, lose, lose. All three groups.
There is no economic growth without consumers. Ben B. sites international finance textbooks during speeches in Atlanta, but he probably forgot to read his freshman economics textbook as an undergraduate.
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