Nobody liked the fact I guessed correctly and early, Wednesday would be a monster day. Well it's Thursday and I'll try to screw up today, popularity above all you know. It's how Congress works, throw candy entitlements to the mob, and figure out later how to pay for the bribe. Can't tax the revenue, we're busy pumping up the economy with inflated dollars. Same charade will take the field, again, in about six weeks when debt ceilings come into play. A lot of wailing and gnashing of teeth, Boehner will tell the Democrats to go f themselves again, but it won't matter.
I wonder when someone will figure out Helicopter Ben retires Jan 2014. That's going to be fun too. I wonder what Volcker is doing? He'll only be 85.
Back to the debt crisis--Usually we'll print the money, dollar dies a bit more, and the market including silver soars to make up the difference. Printing press dollars are more heroin to help the addict feel better. Folks are raised to believe, this is some kind of financially sound approach to an economy, and politicians want to stay elected based on how much candy they throw to voters and what voters misbelieve. It's mob rule by whatever mythology they cling to. And it's hard to tell what that is, it changes no matter how you answer fiscal questions--change the verbiage ever so slightly, watch the differences in perception change folks view.
It usually winds up, where is the austerity to curb govenment programs gone wild? Simple, the cuts are everywhere but MY program! See how that works? No functional litmus test, just a popularity contest. Think Justin Bieber for Fed Chairman!
These are the same folks, working hand in pocket with banksters, that brought you no doc loans, that need your vote and positive perception they are looking out for you. Not whether is makes sense, or the mob gets it right, just whether they get it right for YOU. Look where that's got us. But not before a meal, unless you're on a diet.
Those of us in silver and gold are probably the biggest advocates against their own process of wealth acquisition, namely watching our leadership destroy our paper money to keep their jobs--with all the disgust it deserves. Most here feel that silver and gold just help us stay alive--defensive counterplay to the trend of dollar destruction. We'll all be paper millionaires, the price of a Big Mac. Best be in real money, silver and gold.
My bit has been this: I worked a lifetime to collect a pension and Social Security, and only use savings to keep reflating my take home enough, so that I am paid in constant dollars plus 4%. If I don't make a dime, and inflation stay at 1.0579% a year (that's the real rate since 1971) I should be able to last another 30 years and not feel the difference, pay my taxes, buy or lease a newer car every three years, see the country, play with my investments, go out to eat once in a while. It's not much of a life, but it's mine.
Today's part of that pathetic existance includes watching whether after two monster days, we get that early on "healthy" correction to the astounding five and a half percent pop since NY's eve, and then, some good economic indicators, claims, and cars, will take us into slightly positive territory. Today is a day where gains should just consolidate, to form a floor.
A hold today at these levels would be good. But I like my heroin also.
Roll up your sleeves, it's time to ride the whirlwind.
After all, we've only six weeks to the next ugly dogfight, the debt ceiling, but you throw it in the who cares hopper, because joesixpac has his fix, "permanant" low taxes.