Eli probably has the best trading strategy for this week: close positions, wire money out of broker and into FDIC bank.
Last week, President Bush was urging Congressmen to at least act like they were not in a panic, but he failed and the bank runs intensified.
Today, the news media is telling us that a deal has been struck. But if a there really is a deal, why is the word “hope” still being used. From the AP:
“But officials in both parties were hopeful for a House vote Monday…”
It sounds to me like there is no deal yet and the president has finally persuaded Congressmen to stop acting like fools.
I am thinking about taking a short position in the futures if they open on a large gap up at 6pm. I have also withdrawn the maximum amount of cash from my bank’s ATM machine yesterday, and will do the same today.
Israeli state radio and Debka have reported that the USA has set up an advanced radar base in Israel.
If memory serves, the last time Israel was loaned a cutting-edge radar system, it was before the invasion of Iraq. It was expected that Saddam would launch missiles at Israel even though Israel was not allowed to participate in the USA’s invasion, and so he did.
The Israeli’s are outraged that they are not allowed on the new American military base. There are two reason I can think of for this: the radar is cutting edge technology and the USA does not want anybody to get a close look at it – even an ally. Or, the USA wants to control when the attack on Iran will occur.
If the Israelis had control over this greatly increased capability of intercepting Iranian missiles, they might be quicker to strike Iran. So, it is likely that the USA is following the same policy as with the invasion of Iraq: strike Iran, don’t let the Israeli’s participate, but protect Israel from incoming missiles.
Take a look at David Merkel’s chart of the Fed’s balance sheet.
Merkel is a very smart investor, but he has been against the bailout for political reasons. Now he is in a panic. My question to Merkel is: what did you think was going to happen? Did you think that the Fed would allow the global financial system to collapse just to indulge your naive political views?
So, now we have a pattern:
Day 1 – The “voter”, “taxpayer”, or Depression Advocate instructs his representatives in Congress to implement a depression.
Day 2 – The same fool panics as he sees his investments threatened.
Day 3 – Said fool races to his failing bank to see if his money is still there.
And it is there. But only because his public servants (Chairman Bernanke) have defied his wishes.
The USA was not founded as a democracy, and it is not hard to see why that system of government was not chosen by our Founding Fathers.
When Ron Paul goes into his usual shtick, as he did during the hearings on Wednesday, and claims that Bernanke is not authorized by the Constitution to print fiat dollars, he is clueless to the fact that the Constitution itself would not even exist without the fiat Continental Dollar.
Ron Paul has obviously not even read the history of the Revolutionary War. So let me simplify it for him:
George Washington spent most of his time trying to raise money to fund his army because “taxpayers” and “voters” would not cough up. Eventually, the government just said “to hell with it” and started printing up Continental Dollars and stole the money from the “taxpayers” and “voters” via inflation and won the war.
Inflation is an alternate means of taxing reluctant populations. Today, “taxpayers” and “voters” are hell bent on tearing down the banking system and ending this nation as we know it. I say Chairman Bernanke should print whatever amount of money is necessary to prevent that. It’s time once again for a massive Stupid Tax on this nation of ignorant fools in the tradition of our Founding Fathers.
Let the record show that am against a new Depression and the dissolution of the United States of America.
Put that in your pipe and smoke it Ron Paul!