Thoughts on Markets

Friday, October 14, 2011

California Problems - European "Rescue" - Markets Up Some - Citizens Protests Spreading - Dollar Down - Closer Look at the DOW

There is an important meeting of the G-20 in Paris today. The agenda is to come up with a plan to solve the European debt problem focusing upon Greece. Apparently, the IMF will be called upon to offer some bail out cash. China should be called upon, too. The U.S. is involved and will probably furnish some cash as well.

From Bloomberg, today, we get the article entitled, "European Rescue Plan Takes Shape" HERE.

All of this is adding up to more inflation (Classical inflation; that is, the creation out of thin air more currencies in circulation.). Folks, this is the loudly proclaimed answer to all of the world problems. I doubt that it will work, as this is the basic reason for all the financial problems which now exist. To me, it is more like trying to put out a fire using gasoline. That gives us Burn, Baby, Burn.

I am often tempted to wonder if our leaders have great mental problems and delusions. Can they really be that naive. Perhaps, it is an attempt to move to a world currency as a prelude to a world government. Conspiracy theory or not. Once in the past, the people got together to build a tower up to Heaven for their own glory. The Sovereign God of all confused their single language so they could not communicate with one another and that project failed. Will He not do it again? Never the less, the elite seems to be working toward that goal.

Here at home, we are still into great fall out from the decades of excessive creation of dollars and over consumption beyond our personal and governmental means. California is experiencing a rational challenge from all of this, as reported by Bloomberg:
The debt problems are great here in America. Bloomberg offers an article on California's excessive debt problems: "California’s $705 Million Gap May Spell Higher Borrowing Cost: Muni Credit" HERE.


All is not well here in River City. We are not concerned about the new pool table in town as the Iowa folks were in The Music Man movie. That was a great movie. I highly recommend it as a cross between a Chick Flick and a Guy comedy. From Reuters, the unrest expands as the masses are protesting the unemployment, over taxation, and governmental debasing of currencies, "Wall Street sit-in goes global Saturday" HERE. Much of the unrest among the people started with the modern Tea Parties and sit- ins here in America, but grew to a crescendo in Greece as the government tightened the purse strings by slowing the cradle to the grave socialistic give away program to help solve the financial fiasco there.

The markets seem to be enjoying the perception that there will be a solution to European debt problems. Remember perception is more important than reality in financial markets. Below is the DOW graph from StockCharts.com showing excitement over these prospects:



































Our metals are up, too. Here are the graphs on Gold and Silver from KitCo:











The miners are looking good, too, from Scottrade. Many seem to be n buying range for me. There is always a possibility that they will go lower. So depending upon your current portfolios, cash position, and risk tolerance, you decide for yourself. I am looking to gather more FSM and HL in particular.



Some Current Prices: DOW up 93.25 to 11572.59; S&P up 1.57 to 1216.29; NASDAQ up 29.40 to 2649.64; Gold up 3.80 to 1670.40; Silver up 0.12 to 31.94. Nothing real exciting, but all are presently up.

Hope you like the new format. Please, let me know. 

Be sure to join in corporate worship of King Jesus this week end. Best to each, Doug

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