ZgartZ

In Search of the Next Reserve Currency

All fiat currencies fail in time. If you want to see what money used to be I have put a picture and commentary on notesforinvestors.com/....
The next G20 meeting will stir the pot.

October's End: Reversal Patterns Are Global

Stock Market Salad with Window Dressing and Refunding Treats

Here it is the end of October and time to dress up the mutual fund values. Coincidentally short term interest rates have to be boosted too so that the foreign investors will buy their share of US treasury paper.

So ZgartZ likens it to a salad mixture of NYSE, AMEX, NASDQ, and some foreign sprouts all mixed together on CNBC so that they can be maneuvered higher for the month- end window dressing. This makes individuals’ statements more palatable even if they are only getting half a serving.

Of course we have two master chefs at work, namely Paulson and Bernanke and they will be pushing this menu next week. This will allow foreign sovereign funds and banks to taste elevated interest rates, all the while that the master chefs are getting ready to change the menu. However treats will be served just as they are in Las Vegas casinos and good sales are expected.

After November 4 Paulson will be on the disabled list and a new person will be hired to cook the books (oops I mean write a new recipe). The new fare will likely be burnt investment portfolios with higher inflation rates. The deflation menu is not popular with Washington elite and consequently they will demand a chef with inflationary skills. Bernanke has the recipes but he needs a fiscal sous chef to serve up the meal. There are lots of both Republican and Democratic qualified chefs with inflationary skills, several of whom graduated from The Barney Frank Institute of Monetary Cooking.

The one thing that could cause a problem in Washington and thus make the new cooks fail is an upcoming change of taste by foreigners around the world. Cooking the books could get a lot more difficult as the introduction of IFRS and ISA are introduced. What are these? They are new procedures for accounting and auditing that will make the cooking of books much more difficult. It’s sort of like changing from a barbeque to a convection oven. Things just won’t taste the same to the Wall Street and Washington crooks.

IFRS is the acronym for international reporting standards and ISA is for international standards on auditing. Most free market countries have agreed to conform to these new standards as the basis for accounting and auditing for publicly accountable enterprises in 2011. But wait – the USA chooses not to use these recipes. They haven’t held enough bureaucratic committee meetings and wasted enough money studying the effects. Oh well, when they have to buy oil with Euros or gold I guess they will either use the new recipes or go hungry. Let’s face it in the new one world economy the countries with the least debt and most gold will not only choose the recipes, they will tell others when and what they can eat!

At least that’s how ZgartZ sees it.

The Great Dollar Pump of 2008: A Doomed Central Bank Intervention

Elsewhere on Seeking Alpha I posted a comment "Unintended Consequences" and I could write another here. Mr. Conrad is bang on and all we have to do is look back to 1971 and 1973 when the US dollar was revalued twice. It will happen again as an unintended consequence of all these bailouts.
Central banks that are supporting the $US charade have to do so by expanding their own money supplies. The consequence? Inflation in their own backyards.

The Bedrock Case for the Return of the Gold Bull

Excellent report. Thanks.
Here in Florida, I see a noticeable increase in traffic on Hwy US41 this weekend. It doesn't take long for the public to feel good when gas drops to ONLY $3.68 a gallon. Ha! Little do they know that $5.00 a gallon is in the cards.