Quotable

Sometimes I grow restless o'er piteous minds,

A billion screaming voices to the abyss,

And there's only a handful of worthy kinds.

Sometimes I desire a smaller world than this,

So twas easier to be loved or reviled,

And life's true purpose was harder to miss.

Sometimes I see that life's patterned and tiled,

Monotonous, monochrome, simply too long.

I wish I were once again only a child.

Sometimes I want not to follow along,

To be as an island, though is said Man cannot.

For some reason 'tis solitude that's thought wrong.

Sometimes I laugh at what I should not

For the world is stupid, and large, and mundane.

I wish to live as a Cartesian dot.

Sometimes I think I know what would be sane,

That God would do better with me at his side.

But I see all the same I am hopelessly vain,

And that even He could not compete with my pride.

Hubris, by Joseph Simmons, alias Túrin Húrinson

FX Trading - Our G-20 Saviors: Spend your way to prosperity

Interesting that just as the American people may have reached the point of government spending fatigue:

WASHINGTON-Spooked by concern about deficits, the Senate shelved a spending bill that included an extension of unemployment benefits, suddenly cutting off a federal cash spigot opened by President Barack Obama when he took office 18 months ago. (WSJ)

...as its government heads into the G-20 to tell other countries they need to spend more.

I keep saying to JR that you just couldn't make this stuff up if you tried. No, really JR, it wasn't always this way. We have had governments in the past run by at least semi-competent people. Really! No, really!

I did a piece a while back exploding the many fallacies of Keynesian pump-priming economics. When will we finally drive a wooden stake through the heart of this draconian pseudo intellectual clap trap?

This economic stuff really isn't hard. Economics Professor Dick Armey, which is what he was back when I knew him, used to say this in class on a regular basis:

Taxing moves money and spending moves resources.

In other words, why on God's green earth would anyone with a pulse believe taking money (taxes) from the most productive side of the economy (private sector), which uses resources efficiently thanks to the invisible hand of the market, and give it to the most unproductive side of the economy (government) who continually wastes finite resources (spending), thanks to the visible boot of the market?

Three answers:

  1. Brainwashed by the Temples of Keynesian Hell, often referred to as Ivy League economics departments
  2. Hubris, and a deep-seated belief in one's ability to structure the lives of others
  3. Pay off political cronies and interest groups

These are the qualities embedded in our illustrious team headed off to Montreal to tell others they need to spend more. It is to laugh.

I can just imagine the conversation among other country leaders and their closest confidants. It would probably go something like this: These ridiculous clowns are in control of the most powerful economy on earth? OMG! What did we do wrong?

And so it goes...but don't worry, be happy; we are told by these same masters of economics the recovery is here.

But the money not being taken by the public sector is still being used to deleverage. Two charts on the next page tell the story we think better than anything else we can look at.

  1. The average serf's largest asset-his house-continues to lose value and looks like it can go a lot lower to reach the mean.
  2. Consumer installment credit, as we've said before, is turning south for the first time since forever.

This is sea change stuff. Government needs to let it happen. But, because of 1-3 reasons above, they just can't help themselves ...

US Home Prices: Looks like more to go here...

US Consumer Installment Credit: Looks a lot like the housing chart above

...yes, but the stock market is roaring! Well, is it?

If we re-calibrate stocks in terms of real purchasing power, using gold as our standard, it ain't looking so hot.....

Dow Jones Industrial Average (Black) versus DJIA divided by Gold (Red) Wekly:

Consumption is wealth! Believe that and I have some property in south Florida I'd like you to look at.

Happy Friday!

Jack Crooks

Black Swan Capital

www.blackswantrading.com

Currencies are another asset class ...

David Newman here... Investing vs. Trading

How many times have you seen pictures of people sitting on the beach with their laptop in hand in those Trade Forex, Commission-Free! advertisements? Open an FX account, quit your real job, sit on the beach and get rich is the implicit message. It's ridiculous! But unfortunately that is what sells.

It doesn't have to be that way. You don't have to buy into the hype ... and you don't have to take that much risk in order to get involved in currencies. Trading can be profitable; but it requires extreme focus and discipline. There is another way if you want to invest in currencies.

 Investing in currencies for the long haul means using currencies as another asset class in your portfolio. An asset class that will stand along stocks and bonds and hopefully provide some much needed diversification.

There are plenty of low leveraged long-term investment choices available to you so you can make real money in currencies. They are called Currency Exchange Traded Funds (ETFs).

An ETF is a simple straightforward currency product that you can buy and sell in your standard equity brokerage account. It's the same as buying any other fund traded on the exchange. We offer recommendations on Currency ETFs in our month Currency Investor newsletter. We don't recommend trading them; we do recommend investing in them using a long-term buy and hold strategy.

To sum it up: Our monthly Currency Investor newsletter is geared toward newcomers and experienced investors who are looking for a conservative approach to the foreign exchange market, and learning more about how the global economy works.

In plain language we deliver global macroeconomic analysis and actionable ideas geared toward exchange rate fluctuations over time.

Our analysis is comprehensible and our recommendations consist of ETFs, as I said. So don't get turned off by buzz words like exchange rates or foreign exchange - this investing strategy is as easy to implement as buying and selling stocks.

Plus, at $39 per year it's a deal you'd be hard-pressed to find anywhere else.

Thorough global analysis plus complete investment guidance ... and all for only $39 per year? You can become a Member of our Currency Investor service at our homepage via credit card or PayPal.

Thank you.

All the best,

David Newman

Director of Sales and Marketing

Black Swan Capital

dnewman@blackswantrading.com 

Phone: 866-846-2672