Financial Sense Blog

A lullabye for America, as she is having some tough days... with more to come. Based on some reading of/listening to Chalmers Johnson, his book, "Blowback", this song came shortly thereafter. My wife heard me playing around with this and said that sounds like a lullabye. So be it. This song is a lullabye for America. Good Night America, sleep tight...

If everything you own is held in your own name in your own country, then you are not merely exposed, you are vulnerable absolutely, to whatever decisions the government might make about how you should behave and who gets the wealth you’ve earned. Tomorrow's new government measure, which might land out of the blue, could be a law that affects everyone, or it could be a rule devised to deal with people like you.

The Federal Open Market Committee (FOMC) has decided to reinvest the proceeds from maturing securities acquired through its $1.25 trillion mortgage-backed security (MBS) purchase program. The proceeds won't be invested in short-term, but in long-term Treasuries.

The article of July 22nd on "Smoking Guns of USTreasury Monetization" hit more desks, raised more dust, and brought more attention than expected to the grand fraud in progress using USGovt debt securities. The glaring actions continue without any hint of legal prosecution but deep foreign resentment among creditors as publicity mounts. Nobody appreciates counterfeit of the instruments held in great volume as supposed savings.

Political deciders, corporate elites and mainstream media, almost everywhere, have swung to virtually total support for nuclear power. Major agencies and entities promoting nuclear power, such as the OECD's NEA and the WNA announce the industry's 2010-2020 potential for rivalling its previous highwater mark, in the 1975-1985 period, when it averaged one new reactor on line every 17 days, for 10 years.

Our country is bankrupt. It is economically bankrupt and it is morally bankrupt. We are a train hurtling down the track at 80 mph and just around the bend is a stalled train. It’s as if the train engineer (Obama) has received a radio message that there is a stalled train around ther bend and his solution is to speed up the train to 100 mph. Can’t anyone see the disaster that awaits this country, just around the bend?

Just picking up a daily newspaper can show you how news is biased, letter writers are not exactly with it and some things are just dumb.

There are three primary reasons why the US is suffering from structurally high unemployment: a pervasively irresponsible monetary policy, the continued attenuation of our manufacturing base, and an overleveraged consumer who must now reconcile his balance sheet. In reality, the latter two conditions are a direct result of the first. They are the result of a government that seeks to micromanage the cost of money and the rate of economic growth.

The Gulf of Mexico disaster has changed U.S. priorities, costs, and energy supply sources for years to come. But the fact that the U.S. needs energy isn’t changing anytime soon, and as mass sources of green energy are still a while away, the most likely alternative might be the most surprising one.

The following chart shows the weekly picture of the S&P 500 with the MACD indicator from July, 2002 and suggests a divergence between price and the MACD has been forming since late 2009. The tug of war between the bulls and bears has resulted in a market that has chopped back and forth since May. The "bulls" need to be more convincing with other than beginning-of-the-day gap openings to the upside, up Mondays and last hour afternoon rallies. The "bears" need to more convincing with follow through to downside.