induscrypt/usa

WWWWWhat?!

A well written article that probes the reality behind the green-shoots data provided by US statisticians. Interesting that the fact-finding attempt comes from a non-US writer.

From the page: "The big news of last week was Bernanke finally pulling the trigger and starting a program of quantitative easing, or money printing as they call it in the old country. Things have gotten to the point that Helicopter Ben will be second guessed on every move he makes. We think that you have to start with the assumption that the Fed has some data in hand that we mere peons are not privy to. Given that he made the decision after equity markets had already put in a substantial rally this was not the Fed coming to Wall Stâ€s rescue. It was the Fed coming to the bond marketâ€s rescue.

Yields on the 10 year Treasuries had been creeping inexorably upwards for over a month. As we have noted several times in the past few months, the Fed has to find ways to allow the Treasury to sell a mountain of paper without driving up interest rates at the worst possible time. Buying Treasuries will serve the dual purpose of pulling down rates and pumping money into the US economy. The announcement helped create the biggest one week loss for the US$ ever. As we note below, traders fear this makes an inflationary endgame all but assured when the economy really starts to recover."

Hillary Clinton shows a diplomatic cheek (BBC caption)

Tell me that the smoothness of that curve is only due to figures being ballparks..also, the gradient leaves no room for an exponential leg, even.

From the page: "Mitch McConnell, leader of the Republicans in the Senate, said: "I have serious concerns with this budget, which demands hardworking American families and job creators turn over more of their hard-earned money to the government to pay for unprecedented spending increases.""

From the page: "So many readers have emailed me to warn that we are going into another Great Depression that I decided to find out which companies and sectors did best after the Crash of 1929. With the Standard & Poor's 500-stock index down 39% last year and another 8.5% this year, it can't hurt to learn what separated the winners from the losers back then.
[1930s Lessons: Brother, Can You Spare a Stock?] Heath Hinegardner

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