Global Economy Bursting?

[Workbox]

Commodities Are Just Getting Clobbered Today

True that they are getting clobbered, and some should have shorted or start shorting to wait and get back in when it is back to the bottom of its cycle to buy all over again.

Many stocks are at the peak and starting to turn over, pay attention to their scholastic and if they break through their averages. If they bounce back the specialist are trying to milk it for all they can, if they break through the averages it will continue to go down. We are at tipping point on many stocks, look at amzn and nke, those are very good examples, along with smh, xlf & iwm along with all the banks. But big bubba government it holding it off as long as it can.

Commodities are the next thing to trade once they go down and then are set up to go back up again in their cycle.

 

[Lloyd Bonafide]

The National Muni Bond Fund ETF has crashed. Between the anti-bailout GOP Congress, and the worsening situation in California, maybe people are realizing this is real.

Speaking of California bonds, they have taken to advertising state bond sales on the radio - they are trying to sell the bonds directly to consumers. It seems kind of odd hearing the radio ads, and they are attempting to sell $10 Billion in Revenue Anticipation Notes next week.

 

[AnonApprsr]

I don't know if you all read my post, but if any country (china) tried to collect on the debt owed, we'd just say no. They couldn't force us. If countries tried to retaliate, we would force compliance. The world police can't be arrested.

 

[Randolph Kinney]

California’s October tax receipts surpassed budget estimates by 4.6 percent, while spending surged even more, according to Controller John Chiang. October’s spending was $768 million, or 9 percent, more than expected.

For fiscal 2011, which began July 1, the state collected $26.1 billion through last month and spent $33.6 billion. Combined with a $9.9 billion deficit on June 30, California had a $17.5 billion cash gap on Oct. 31 which it covered by borrowing $10.8 billion internally and $6.7 billion from outside sources with revenue anticipation notes (RANs).

California is counting on investors to buy almost $14 billion in new debt over the next two weeks as the state returns to the bond market. Treasurer Bill Lockyer has repeatedly reminded Wall Street that the state Constitution mandates that bond investors must be paid.

Lockyer expects to sell $10 billion of RANs early next week in two series. Lockyer is counting on heavy demand for the securities from individual investors.

Meanwhile, Governor Arnold Schwarzenegger will declare a fiscal emergency and call an emergency session of the incoming Legislature to address California’s massive budget deficit. Schwarzenegger's announcement comes one day after the state’s chief budget analyst said the shortfall has grown to $25.4 billion.

As long as California can borrow the money, no problem.

 

[Randolph Kinney]

Sugar Prices Fall the Most in 22 Years in N.Y.

http://www.bloomberg.com/news/2010-...-on-exports-from-europe-surplus-in-india.html


Refined sugar prices plunged by a record in London, and raw sugar futures in New York tumbled the most in 22 years as speculation that China will boost borrowing costs roiled commodity markets. All this because China has an inflation problem. Maybe the U.S. will benefit as Bernanke continues to use QE 2 to inflate the U.S. economy.

Strange, commodity prices dive, muni-bonds crash, and the yield curve distorts in the middle as QE 2 begins. Are speculators taking their bets off the table? China sets the demand for commodities and now it seems it can move interest rates as hedge funds do their thing in reaction.

Now the other problem - Europe. The European Central Bank is the only buyer of Greece, Ireland and Portugal sovereign debt. And the ECB will have to expand it buying program to prevent a collapse from spreading. Maybe the FED can expand QE 2 to buy up individual bonds of states like California since it is unlikely Congress will authorize another bail out.

 

[Randolph Kinney]

Municipal Bond Market Shudders

http://www.nytimes.com/2010/11/13/business/economy/13bond.html?_r=1&nl=todaysheadlines&emc=a25

Concern over the increasingly strained finances of states and cities and a growing backlog of new bonds for sale is being met with low appetite from investors. Some have warned that indebted states and cities might face a crisis akin to the one that brought Greece to its knees. How will state and local governments manage their debts? Many are staggering under huge pension and health care obligations. California, for example, will have to sell nearly $14 billion of debt this month.

One can sense fears of a systemic credit crisis and defaults.

 

[Austin]

This post office situation is something to keep on the radar screen for a number of reasons. Reason # 1 is that it illustrates the the fact that the system is grid locked and at the point that anything they do they are damned and they are damned if they don't. For example, the post is in trouble because they can't fund the retirement funds and the retirement fund is going under because interest rates or too low. The interest rate is low to stimulare the economy but is killing the post office. Reason # 2: The postal union is prone to violence and things can get out of hand fast and with Obama at the helm does not help. The story also points out that the electronic mail is making postal delivery obsolete and it is in gradual decline. Watch for them to try and get congress to pass laws to kill competition like UPS is doing.

Losses double for U.S. Postal Service

http://money.cnn.com/2010/11/12/news/economy/postal_service/index.htm?section=money_topstories

 

[Randolph Kinney]

I have said that low interest rates kill savings. It also makes all pension plans under funded.

 

[Randolph Kinney]

Here is the best explanation of QE 2 and why we have to do it.

http://www.youtube.com/watch?feature=player_embedded&v=PTUY16CkS-k

 

[Big ole Boy]

I had a dream . land/sovereinty transfers

My old boss in my dream don't worry about the narrative to save the world system .....

..... he said, we are going to sell our land to China ......

....

..................................

...that the only real narrative that balances world accounts ..... land/sovereinty transfers ..