Tag Archives: Stock Market

Obama Punts Syria to Congress, will Congress Vote to Stimulate the Stock Market?

As we stated before, what is currently occurring in Syria has serious implications for all of humanity, and with the weight of the world on his shoulders. Obama has chosen to do what any self-respecting statesman, circa 2013, would do.  Mr. Obama has punted the question as to whether or not the United States should intervene via military action to the US Congress, who, it would appear, have been pulled away from their leisurely summer pursuits in an effort to inform themselves on the situation before they cast a vote on the matter.

What will they decide?  The world is holding its breath in anticipation of the outcome of this latest political charade.  For most thinking people, the answer is clear, the US should avoid a conflict that will not only trigger a series of inevitable side shows which are sure to include standoffs with China, Russia, and Iran, complete with Israeli sabre rattling in the background, but will most surely further bankrupt a government which has operated in the red without a budget, let alone a clear foreign policy, for five years running.

Fortunately for investors and unfortunately for the Syrian public and the world at large, the US Congress is not renowned for its thoughtfulness in such matters.  While the British MPs took the high road and have prohibited their fearless leader from committing to military intervention, we would expect the US Congress to reluctantly authorize the use of force holding up an ambiguous “moral obligation” as the ultimate reason they have chosen to reluctantly order a military intervention.

Moral arguments aside, war, like zero bound interest rates and quantitative easing, is good for stocks and moneylenders and bad for everybody else involved.  Should the US Congress authorize military intervention in Syria in their upcoming vote on the matter, we anticipate a short-term dip in equities, perhaps only a few days, which will present a tremendous buying opportunity.

The situation in Syria is lamentable and a blight on the basic humanity of us all.  It is also a powder keg that threatens to further destabilize, were it possible, the fragile Middle East.  Should the powder keg go off, equity values are likely to rise dramatically in the medium term against the backdrop of a widespread military conflict.

Unfortunately, price levels for everyday goods will rise even faster.  While we hope for a no vote, it would be wise to anticipate a yes vote and plan accordingly.

Key Indicators for September 2, 2013

Disturbing economic trends continue into 2012

1/9/2012 Portland, Oregon – Pop in your mints…

2012 has gotten off to a relatively uneventful start on all fronts.  Stock and Bond markets continue on autopilot and are completely underwritten by central banks at this point.  Commodity prices seem to be following the inflationary path that the central banks support of the stock and bond markets has set them on.  Meanwhile, productivity, real output, appears stable and poised to climb, which should further fuel inflation as the money supply begins to overwhelm the supply of real goods and labor.

The assault on civil liberties continues.  The United States surrendered its status as a free country when it approved the NDAA, assuring that they government could detain anyone, anywhere, for as long as they want, without ever having to produce charges.

 

 

 

Finally, widespread corruption continues unabated.  Officials at MF Global are still loose after robbing $1.2 billion of client funds in a desperate attempt to stave off a margin call which brought down the firm as the CME washed its hands of the situation, leaving traders everywhere wondering if their univested brokerage funds are safe or even truly exist.

Now, from Switzerland, the bastion of financial morality, comes word that the wife of Philipp Hildebrand, now former Chairman of its central bank, made a substantial purchase of US Dollars just weeks before her husband and his colleagues shocked the world by surrendering the Swiss franc to the same fate as the doomed Euro.  Coincidence?  It would appear not.

 

The Swiss National Bank Courtesy of Baikonur

 

In short, there is nothing in the data to disprove the hypothesis that the world’s financial system and by default the nations which are currently charged with it are headed to hell in a hand basket. 

This, fellow taxpayers, should be cause for hope.  For only when it is acutely understood by all involved the incredible destruction which is being wrought every single day by the current, insane, “debt is money” financial system under which we live, can things finally begin to get better.

 

We hope and pray that the day of collective acute understanding is near, and that the transition to a new system passes peacefully.

 

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for January 9, 2012

Copper Price per Lb: $3.39
Oil Price per Barrel:  $101.40

Corn Price per Bushel:  $6.52  
10 Yr US Treasury Bond:  1.96%

FED Target Rate:  0.07%  ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce:  $1,611 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  2.00%
Unemployment Rate:  8.5%
Inflation Rate (CPI):  0.0%
Dow Jones Industrial Average:  11,995  

M1 Monetary Base:  $2,290,800,000,000 RED ALERT!!!  THE ANIMALS ARE LEAVING THE ZOO!!!
M2 Monetary Base:  $9,718,900,000,000 YIKES UP $1 Trillion in one year!!!!!!!