On Friday, Ben Bernanke proclaimed that the Fed will not permit deflation:
“The FOMC will strongly resist deviations from price stability in the downward direction.”
TLT plunged 2.79% on the day (and TBT soared 5.65%). So, did Bernanke kill the bond bubble? Did the tidal wave of money that rotated out of stocks and into bonds reverse course on Friday?
Why is boxing called “The Sweet Science”? Because it’s just slap-fighting with big fluffy mittens. Tonight we will see a demonstration about how boxing doesn’t prepare you for real-world fighting at UFC 118 when champion boxer James Toney gets a beating from a guy who knows how to fight for real, Randy Couture.
Normally, the UFC does not put on this kind of circus act. And that’s a good thing. But since boxing is a competitor to MMA for pay-per-view dollars, I think Dana White probably sees this as a great way to embarrass boxing and take market share.
Update: Well, I was right. Toney didn’t land a single punch, and was instantly taken-down, mounted, pummeled, and choked out.
Why has gold soared during this deflationary depression? Maybe it is forecasting that inflation is right around the corner, or that the USA will default and the dollar will lose its status as the world’s reserve currency.
But what if it’s something completely different? What if gold is really forecasting a military confrontation between the USA and China? The Chinese have been buying quite a lot of gold after all, and are challenging the USA in the South China Sea.
At the bottom of this BBC story, you can see a map showing China’s ridiculously aggressive claims of waters all the way down to Malaysia. And there have been reports of Chinese naval vessels exchanging fire with the locals.
Chinese officials have told the USA that the South China Sea is a “core interest”, which means an area they plan on conquering in the future, like Taiwan.
Further reading: Chess on the High Seas: Dangerous Times for U.S.-China Relations.
Note: As far as I can tell, Marc Faber is rooting for the Chinese. Since he lives in Thailand and has an office in Hong Kong, I suppose that he needs to kowtow to the regional power.
If you are bearish, you have company – lots of it.
At the 1:46 mark of this video, you can see Jim Cramer trying to knock the market down when he says:
“I’m predicting mass panic tomorrow morning.”
That was while the market was open. Cramer was trying to cover his motives by pretending to be mocking weak-kneed bulls. But that was obviously a thin veneer over a blatant attempt at market manipulation. Can this be legal?
CNBC also published a story titled: “SEC on Attack, Vows More Action on Crisis.”
Note to SEC: While you are “on the attack”, isn’t it time for a anther look at this guy? Is it really a good idea to have the top financial network inciting panic?
