8/10/2011 Portland, Oregon – Pop in your mints…
Gold hit $1,800 today. That should tell you all you need to know about what is happening.
We are trying not to look at the markets today. It gives us the morbid feeling that one gets as they are about to witness a train wreck or other catastrophe. Our curiosity begs us to look but our morality forbids it.
What we are hesitant to watch as it gets underway is some form of global banking collapse. From CNBC:
“Rochdale banking analyst Richard Bove said there is little chance of a French bank default.
“If a bank in Europe went under, it would cause huge counterparty risk. It wouldn’t be that bad for 99 percent of the banks in the country. It would be bad for the biggest banks…Why are all the banks falling in price? The deeper issue is what the Federal Reserve did yesterday,” said Bove.
The Fed, in an unusual move Tuesday, revealed that its “extended period” to hold rates at zero runs until the middle of 2013. The Fed also downgraded its view of the economy to a picture of slow growth.
“The Federal Reserve told me, number one, that the economy is weakening and my loan losses just went up,” Bove said. “The ability to make new loans is hampered by the weaker economy, and on top of that, the Federal Reserve said they were going to keep margins on my product down,” he said, explaining banks need higher rates to make profits on lending and deposits.”
As we alluded to yesterday, the Federal Reserve essentially ended its storied career yesterday. In an all out attempt to goose the markets it spent its last bit of credibility. It is currently being carted off the field to cheer its losing team from the sidelines. It may come back, but, like Brett Farve, it may find its former glory elusive.
With the FED injured and out of the game, the world’s largest banks are readying to show the world that there really is no entity on the planet which is “too big to fail,” starting with themselves. There is no doubt that the ECB will pull out all the stops to save the large French banks, as Mr. Bove suggests above.
They will be carted off behind the FED. But enough of the markets, it is just too ugly to gaze upon.
Let’s talk about the weather!
It is an unusually cold “summer” day here in Portland. We loosely use the term summer because it now seems that summer has taken its own vacation and left the inhabitants of the Northwest with a straight shot from Spring to Fall. Not so bad, provided we get the best of both seasons.
Still, the lack of sunshine at this time of year seems to be taking its toll on people. When the sun comes out here, you suddenly become aware that the city has about triple the number of inhabitants than you once thought. People literally hibernate here and when the sun brings them out it can be startling if you are not expecting it.
Logic would follow that, with the recent weather data taking a turn for the cooler, the global warming crowd would declare victory and let the planet move on to bigger and better things. Now that the myth of global warming is apparently being disproved by nature herself, scientists are clinging onto the term “climate change” to justify the right to determine who needs how much energy. The right to energy in recent times was determined by wars so perhaps this is an improvement.
Many will quickly note that we have certain facts wrong about global warming/climate change and will want to correct us in our error. To them we say, please do not waste your time. We do not pretend to be an expert at anything here at The Mint, we are merely opinionated. The most normal thing is for us to be wrong, it helps keep us humble.
That said, we base our “the globe is now cooling” opinion on two anecdotes that we heard while in Nebraska recently. First, Lake McConaughy, which just five years ago was nearly bone dry is now full to overflowing. The “experts” said that it would take 50 years to reach normal levels.
Second, we spoke with a guy from northern Wyoming who said they are seeing new GLACIATION taking place right before their eyes. In a valley where last season there was merely a stream coming down from the mountains now stands a new glacier over 50 feet high. Not just snowpack, a glacier. He could not recall this ever happening there before. Let alone so quickly.
Then there are the bears. Rumor has it that they are moving to lower altitudes in the Northwestern US because snowpack in the mountains is not receding as it normally did and this is driving the bears closer to populated areas in search of a feast to fill their bellies for the winter.
And finally, everyone is aware of the flooding taking place along the Missouri and Mississippi rivers this season.
To us, here in the Northern Hemisphere, it appears that the globe is now cooling at an alarming rate. Is the solution now to burn more fossil fuels?
Our point is that the weather is something that no man, no matter how many terms he has spent in Congress, can control. Those who believe that mankind can somehow master the weather (the logical implication and end of most policies invoked in the name of stopping “climate change”) are innocently deluded at best and in the worst case may be power hungry control freaks.
As for allowing Wall Street first dibs at selling us the air we breathe (cleverly disguised as “carbon credits”), any thinking person should quickly identify this notion as just plain insanity.
On the other hand, we have great respect for people who are deeply committed to taking care of the environment. We wish them well and whole heartedly support their dream of bringing peace to the earth and balance to what occurs on it.
Our disagreement with most mainstream climate policy is a question of methods. While most see a problem with what mankind currently uses to create energy, we see as a problem with what mankind has chosen to use as money.
Once the monetary system is fixed (which may be occurring shortly), we suspect that the earth will be cleaner and greener than even the most ambitious environmentalist has ever imagined.
Best of all, the change will be a product of mankind’s collective free will, not of the hollow decrees of a governmental edict.
Stay tuned and Trust Jesus.
Key Indicators for August 10, 2011
Gold Price Per Ounce: $1,795 PERMANENT UNCERTAINTY