5 thoughts on “Wham! Clank, ting, ting, … whomp!”

  1. Heston

    The hot-potato is the US economy. No one wants to take responsibility for it. 401k’s based largely on stocks will produce armies of indigent elderly. I suggest you watch “Soylent Green” (remarkably prophetic) to get a hint as to what will happen to our unwanted populations.

    Soylent Orange- Prisoner Flavored
    Soylent Purple- Fru Frus
    Soylent Beige – Soldier Flavored

    Possibly we can use them all as batteries to charge up cell phones before pulling their plugs. Waste not, want not.

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  2. Uncle Al

    Thursday, 24 April, Los Angeles Times, front page above the fold. Rice hoarding is rocketing across America, prices are up 300-500%. Wheat and corn products are expected to follow. Gasoline hit $(US)4.799/gallon for premium in California. Uncle Al is also hoarding: #4 Buck magnum shotshells. A point of sale closing argument must be terse and persuasive to prevail.

    Official inflation rates do not include food or fuel. Don’t worry, be happy; prosperity is just around the corner. 1929 was the flood. It will be fire this time.

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  3. gaussling Post author

    Soylent Green is one of the great SciFi movies. Charlton Heston, E.G. Robinson. I remember the dying chamber that played Beethoven.

    How is it that stocks and other financial instruments are favored for tax deferred investments? What about gold or other tangible items?

    The rice shortage seems to be mostly an Asian fiasco. A shortfall in Gov’t stocks, pests, increased demand in sub-Saharan Africa. A perfect storm (to abuse an over-used term). The USA is supposedly self-sufficient in this crop. Nonetheless, I think I’ll buy a case of Rice Crispies. http://yaleglobal.yale.edu/display.article?id=10583

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  4. G Taylor

    “How is it that stocks and other financial instruments are favored for tax deferred investments?”

    Well, there are armies of people on Wall Street who transmute paper (stock certificates) into gold via primary offerings, investment advice, front loaded/back loaded fees etc. Wall Street HATES real things that can’t be bull-sh*ted up. Since capital gains are low, why not hire people to spin the prospects of a magical piece of paper rather than investing in scientists, research infrastructure or how about a living wage for the average Joe? It allows the frat jock jerk with wealthy parents to earn a solid living despite knowing virtually nothing. This mindset has grown, and it diverts wealth into schemes rather than quality economic development. We’ve kept interest rates too low and produced negative real interest rates globally. So why put money in the bank that may be lent for a noble purpose when the interest rate is negative? People thus fill up the gas tank, buy food and live in a ‘just in time world’.

    WARNING – Japan may be raising interest rates to counter inflation. Japan tries to keep its currency weak due to 40% of its GDP resulting from exports. Japan carry trade is source of cheap money for commodity plays. If this comes to pass, commodities may take a hit. ECB talk on lowering rates (thus devaluing the Euro) is just talk now and may not occur. Next FED meeting may prompt “sell on the news”
    dumping of commodity positions. This anticipates future interest rate increases (which increases dollar’s value relative to precious metals).
    Hence short term purchase of precious metals is ill advised.

    If none of the above occurs (and precious metals rally over the next two weeks), then things are worse than even I can imagine (and that’s pretty bad).

    Quality info from today’s news.
    http://www.cnbc.com/id/15840232?video=722550381&play=1

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  5. gaussling Post author

    “… it diverts wealth into schemes rather than quality economic development. ”

    Very well said. I think this is a major weakness in US business practice.

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