Uggg.
The "new" Euro-Zone stress tests last summer proved there was absolutely NO problem in Europe. ... Ah, ... well, ... ah ..., well ...
Sell. Sell. Sell.
Everyone used to say... "mortgage your house and short-sell!" - ha ha ha ha ha.
Now, your house is worthless and the banks have no money to lend for mortgages anyway(!)
Sad state of affairs; however, we strongly recommend you pay strict attention to the "results" of the "big bank controlled" stress test.
Ha ha ha ha ha ha ha ha ha ha!!!!!!!!!!!!!!!!!!!!!!!!!!!!
And then... do the exact opposite from what the "data" says.
Big banks control people, NOT the other way around - as we know.
Tuesday, November 22, 2011
HIRE - but NOT in the US
Why is printing currency (USD) very bad for the 9% (really 18%+) unemployment rate in the US?
Because the USD is not only under imminent threat to be further devalued, it also has a 100% uncertainty in near-term relative value in any direction with regard to anything.
Suppose you owned a business that dealt with the planet Earth. Not just your home town in Lubbock TX, but the entire world... a little bit like Texas Instruments for example.
Which would be better for your business financially... hire a US employee and make a one-year commitment in the USD with all the overhead expenses... or... hire an employee in Asia, for example, and purchase a currency derivative (put, etc.) at the same time -- as a small insurance premium to define your risk?
Especially when you know that a currency move in the US would prompt a similar currency move where you made the hire and you would come out on top anyway? (Remember, your revenue normally does not originate in USD today, especially with 20% of US folks unemployed.)
You would not need to be in the business of rocket-science to quickly make that decision.
If US FED policy dictates that the US gets screwed, then probably the US will get screwed.
Uncle Ben with his "team" needs to go back to selling converted rice as in 1950 when a few of his ideas still had some relevance.
Because the USD is not only under imminent threat to be further devalued, it also has a 100% uncertainty in near-term relative value in any direction with regard to anything.
Suppose you owned a business that dealt with the planet Earth. Not just your home town in Lubbock TX, but the entire world... a little bit like Texas Instruments for example.
Which would be better for your business financially... hire a US employee and make a one-year commitment in the USD with all the overhead expenses... or... hire an employee in Asia, for example, and purchase a currency derivative (put, etc.) at the same time -- as a small insurance premium to define your risk?
Especially when you know that a currency move in the US would prompt a similar currency move where you made the hire and you would come out on top anyway? (Remember, your revenue normally does not originate in USD today, especially with 20% of US folks unemployed.)
You would not need to be in the business of rocket-science to quickly make that decision.
If US FED policy dictates that the US gets screwed, then probably the US will get screwed.
Uncle Ben with his "team" needs to go back to selling converted rice as in 1950 when a few of his ideas still had some relevance.
FOMC Minutes - What it means for YOU
It means the FED is confused. None of the FED policy has worked. No surprise, the policy comes from the year 1930 as we explained in many prior posts.
We do see an advance-warning that more USD will be printed once the FED has time to make up a phony name for the action, e.g. QE3 would not be "money printing for a third time" rather it would need to be an MBS "purchase" program "targeted-at" something or other. The words need to be crafted and are not made-up yet.
Long and short? As we have said, watch out for the printing presses! They will turn your money into monopoly money... we should all get monopoly boards for Christmas so we have something to use our USD for(!)
We do see an advance-warning that more USD will be printed once the FED has time to make up a phony name for the action, e.g. QE3 would not be "money printing for a third time" rather it would need to be an MBS "purchase" program "targeted-at" something or other. The words need to be crafted and are not made-up yet.
Long and short? As we have said, watch out for the printing presses! They will turn your money into monopoly money... we should all get monopoly boards for Christmas so we have something to use our USD for(!)
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