Yankee Running Dog

Thursday Outlook: Another Bubble?

The big news from Ben was that he was going to buy back his own bonds. This of course means printing money at no cost to Fed, but it should have a cost on the dollar. This could be the big pivot point in the dollar. So lets see, expect a rise in gold, commodities, PG (multinational corps with large overseas profits). In other words, expect the price of real things to go up as the dollar goes down. Lets just hope they don't turn it into Wiemar 1923 where a wheelbarrow of paper money bought a loaf of bread. Helo Ben could be headed for hyperinflation

Trichet, ECB Missing the Point with Crude

Are you smoking crack?

The mission statement of a central bank is to support its currency. To suggest that the ECB must pander to the US central bank problems as some poor relation only tells me of your American arrogance. Bubbles Greenspan and his stepchild Helo Ben are beginning to reap what they have sown. You can only pour on so much money and cheap credit before there is a tipping point and inflation eats its way into the bubble. The ECB has made connected moves with the US to try and keep a sinking ship afloat, but now they decide to worry about their own ships. To cast dispersions upon them for American stupidity is really nothing more that bold faced American arrogance at its worst.

Get out of the blame game and start facing reality. Today is June 6, D-Day. Let me see, the headlines were death of SUV, GM closing 4 SUV plants and laying off 10,000, the biggest jobless jump since 1986 and oil moving toward 150. Wake up and smell the coffee, and don’t blame the ECB. A new reality is hitting the American beaches today, and don’t blame the Europeans. You might just need their help later.