(Payson, AZ) Although I won’t be able to comment on the action in Gold this morning once this gets posted, please note that the Kitco quote this morning topped $1,622 for a few minutes, and near as I can figure it, with the dollar down a tad, the stock market might be trying to rally later one, but initial bets seemed against that with futures down on the lack of a debt deal.
There aren’t any big economic numbers until tomorrow morning when the next Case-Shiller/S&P 20-city housing numbers come out. Tomorrow’s report will be a “double clicker”: First for the regular update around 7:55 AM Central and then again about 8:15 AM when I should be able to get the 20-City data posted and a chart. This could be a biggie – depending on what the data shows about the “recovery” we keep hearing about.
The balance of the week include such sleeping aids as the Fed Beige Book, Durable Goods, and GDP. For this week, what’s happening in Europe is likely to drive things and that gets us to our next thrilling report….
Boom Drops on Greece
What does Greece have in common with the Caribbean dance called “the limbo”?
If you’ve never gotten wild enough to try it, the Limbo is where you bend backwards, trying (often futility) to hang onto your sense of balance while sliding under a pole. Each time you get under it, it’s lowered again, and again, until sometimes the pole is only a couple of feet off the floor.
While this is going on, the crowd will often chant “How low can you go? Limbo!”
Which is a longish way about getting around to Greek debt being lowers to “Ca” grade by Moody’s this morning, but it sure is a helluvah lot more fun.
Inflation or Deflation?
Top be sure, the flip up in gold this morning means people are thinking about inflation – or, more correctly, about the dollar’s purchasing power being watered down. But, we also have to look at the potential for deflation in areas like housing. Oh, and as this Seattle Times article notes, there’s also some downward pressure coming for the Big Pharma corps as key patents are set to expire…
The Joseph Curl Op/Ed in the Washington Times this morning is pretty good. Under the headline “Is Obama a pathological liar?”
But the republican side is no better, and both parties seem committed to dismembering the last vestiges of the Constitutional Republic the Founders so wisely crafted.
Don’t believe it? There are two major stories swirling around in background. One of these has to do with the idea of a “Super Congress” which would be charged with raising the debt ceiling and such…a thoroughly rotten to the core idea. Oh, and not to mention unconstitutional.
So dueling debt plans by politicians wearing ear plugs to the public cry for reasonable accommodation.
And if that isn’t scary enough (politicians agreeing to basically lie about America’s financial condition until after they run for the trough again in 2012, consider the sound of approaching jackboots in HR 1505 which is coming up shortly: This is the legislation which would formalize the Department of Homeland Security power grab trying to set up what the ACLU calls the “Constitution-free Zone” within 100-miles of the coast!
From the HR 1505 analysis by the Congressional Research Service, the proposed measure…
“…Prohibits the Secretary of the Interior and the Secretary of Agriculture (USDA) from taking action on public lands which impede the border security activities of the Secretary of Homeland Security (DHS) (Secretary).
States that the Secretary shall have immediate access to any public land managed by the federal government in order to conduct activities that assist in securing the border (including access to maintain and construct roads, construct a fence, use patrol vehicles, and set up monitoring equipment).
States that a specified waiver by the Secretary of certain laws regarding sections of the international border between the United States and Mexico and between the United States and Canada shall apply to all sections of the international land and maritime borders of the United States within 100 miles of such borders with respect to the Secretary’s activities under this Act.” [emphasis added]
So while the budget go-round is entertaining, it’s nothing more than trying to either paper over the free lunch payment issue until after the election, but in background, legislation like this is moving along little noticed dismantling little items like the protection against unreasonable search & seizure. The co-sponsor list is here.
Solving the Right Problem
One of my favorite sayings: To a man with a hammer, every problem looks like a nail…” and so it is with Congress on this budget mess. By wimping out on a real solution to economic stimulus, we’re now seeing headlines like “Return of Mass Layoffs a Grim Sign for US Workers.”
In management, there’s a concept called “Behind the Power Curve” which goes to the idea that if you solve the right problems first, the rest of the problems are manageable.
Guess who’s gotten seriously behind the power curve? Hint: It’s not a state, it’s a district….
The outrage in Norway will make headlines today as the suspected perp will be arraigned in a closed court session.
Key thing to look for will be reports going to his motive. And, no, I sure wouldn’t want to be his life insurance company, if he has one. There’s just too many parts of this that feel like a ‘lone gunman‘ kind of deal…the old news nose is twitching that things may not be as they appear so far in this…
Another big emotional release as pop star Amy Winehouse died, possibly by substance abuse, this weekend.
Humans Acting Badly
Domestic situation turned deadly in Texas at a roller rink this weekend: six dead there.
12 people were wounded in Seattle’s Highline area after a fight broke out at a low-rider car show.
Interesting story out of Santa Barbara, where the city is going for an injunction to keep 30 named gang members from associating in a city “safety zone”. We’ll see if it works…
Not all is bad, though: Check the story of the onboard “flash mob hula” on a SF to Honolulu 767. Who says I only report bummers and downers?
Heat is Off
Some drop in temps expected along the Eastern Seaboard this morning, after a really warm weekend.
But, before you march in that Global Warming demonstration, might want to note 9 feet of snow in four days well south of the equator; Chilly in Chile I think is how we summarize it.
European predictions of a “Worst Winter on Record” have me thinking about sinking our water lines down another foot in our garden area. Gluing up PVC pipe, even with hot set glue, is no fun when it’s 19-degrees outside. Been there, done that.
Reader Note: Normally, I don’t get into specific plugs for ads of sponsors who help to offset the costs involved in operating this site. But, a special announcement this morning from the folks at Emergency Essentials – they have some of the Mountain House freeze-dried foods back in stock and so if you’re interested in rounding out your stored food plans, might want to follow up on this. So…
(more after this…)