consumption: What’s wrong with these pictures? – … From 1960 to 2000, consumption’s share of output averaged 65.6%, fluctuating with a standard deviation of only 1.8%. … As the chart below shows, one consequence of U.S. consumer’s great borrowing and spending spree was a “breakout” of consumption’s already massive share from its long-held “trading range.” Since 2006, consumption has accounted for over 70% of GDP. .. – Annaly Salvos
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important about monetary velocity – Why Are Companies Hoarding Cash? – Posted by Larry Doyle – Sense on Cents
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You Still Think U.S. Treasuries are Safe? – by Paco Ahlgren – Bernanke is determined to hold down the long end of the yield curve with the economic wizardry described by the shamanistic (and completely ridiculous) phrase known as quantitative easing. And let’s have three cheers for all those die-hard, apple-pie-eating, flag-waving morons out there who actually believe the federal government can possibly commit $24 trillion and expect an outcome other than hyperinflation. – The Bottom Violation
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paco1 Massive U.S. Debt, No Consumer Spending, Government Near Bankruptcy. How Could Treasuries Go Higher? – Paco Ahlgren – … But they still haven’t got the message: nobody wants to borrow. And more importantly: nobody wants to lend. Still, that tidal wave of cash has more potential energy than a uranium atom convention, and Satan himself knows I don’t want to be anywhere near when that little sweetheart of a catastrophe violates its restraints. … – THE BOTTOM VIOLATION
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has opinions – GURU OUTLOOK: DAVID GERSTENHABER & THE “CONTAINED DEPRESSION” – David Gerstenhaber is a former Tiger Cub and President of Argonaut Capital Management. His distinguished pedigree is of the long line of successful traders that once traded under Julian Robertson (see Robertson’s guru outlook here). His global macro strategy fund has never lost money since its founding in 2000 and has averaged an annual return of 19%. –
The Pragmatic Capitalist
video: MOSLER: JUST PRINT MORE MONEY - Concerns over the fiscal crisis in Greece are weighing on the markets this week, but Warren Mosler, founder of AVM Securities, says the answer to Europe’s problems could be as simple as printing more money. He also maintains the Federal deficits are a non-issue because the US government, with their monopoly on money, can never go bankrupt. – The Pragmatic Capitalist
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Is the Bond Market Screaming Inflation? – by The Housing Time Bomb – Uh oh…
Did anyone catch the 30 year bond auction yesterday? If not, take a look (warning, this is not for the faint of heart): – Seeking Alpha
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Forget Greece, the US Almost Had a Failed Treasury Auction – by Graham Summers – … On Wednesday the US offered $16 billion worth of 30-year Treasuries (US debt that will mature in 30 years). Before we get into the details of how much of a disaster the auction was we’re going to do a brief review of how US debt issuances work. … – Gains, Pains, & Capital
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Fear Takes the Wheel – Petrer Schiff – Over the past three or four years a strange phenomenon has developed in the global investment markets. With some exceptions, many asset classes, in particular domestic and foreign equities, commodities, and foreign currencies have tended to move in the same direction on a day to day basis. … However, few recall that this pattern is relatively new in the annals of financial history. Fewer still realize the reason for the current anomaly. From my perspective the most logical explanation is fear, which has become global, pervasive, and persistent. – EuroPacific Capital
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China’s Growth May Top 11% Even as Officials Rein in Lending – China’s economy, the world’s third biggest, may expand at a faster pace in 2010 even as officials cool lending to restrain inflation and avert asset bubbles. Goldman Sachs Group Inc. maintained its forecast for 11.4 percent growth after the central bank raised reserve requirements for lenders on Feb. 12. That compares with an 8.7 percent expansion last year. – Bloomberg BusinessWeek