Should The Government Stop Dumping Money Into A Giant Hole?

Source: youtube.com

From Bob

Treasury 30-Year Bonds Advance as Fisher Says Fed Doesn't Want Inflation

Quantitative easing - pumping money into the economy causes inflation for anyone still impressionable enough to follow 'official' words rather than action. If you double the money supply in the game of Monopoly and allow free markets (opening bidding) to set the price of properties, you'll notice that Boardwalk sells for a lot more than $500. Of course, the rising price of Boardwalk wouldn’t be considered inflation if you were playing against the Bureau of Labor and Statistics (BLS). They would calmly suggest that owner’s equivalent rent rather than market prices contribute to board game’s CPI.

Treasuries rose, climbing back from their steepest loss in two months, as Federal Reserve Bank of Dallas President Richard Fisher said policy makers don’t want inflation as they pump money into the economy.

Fisher’s comments spurred speculation demand will increase today when the U.S. sells $16 billion of 30-year debt, those securities most sensitive to costs in the economy, after bidding waned at a 10-year auction yesterday. The extra yield the long bonds offer over 10-year notes closed at a record 1.59 percentage points yesterday, which will help attract investors, according to Barclays Capital Inc.

Source: finance.yahoo.com

Spam and a slow tow for thousands on cruise ship

I had to do a double take on this headline. At first, I thought it was a new economic program - "Spam and a slow tow for thousands." Then I realized it was a vacation story.

The former fun seekers of the Carnival Splendor are cruising again — but just barely.

In a scenario likely none of its more than 3,000 passengers pictured when they planned their seven-day jaunt on the Mexican Riviera, the disabled cruise liner was being towed to San Diego by tugboats. Instead of a lavish seafood buffet, passengers were subsisting on Spam

Source: ap.org

McRib, Fed Decision, and Price of Gold

You'd think the introduction of at least $600 billion by the Federal Reserve would be a hot search topic for Americans trying to protect the currency in their pockets.

A visual summary of yesterday’s “hot” Google search trends suggests otherwise.

The news that McDonalds will be reintroducing McRib generated massive search volume. The following charts illustrate how the McRib news dwarfed both the Fed’s Decision and Price of Gold queries.

The McRib Search Volume Index (SVI) surged above 40 yesterday.

McRib SVI


The Fed Decision search was lucky to register 5-10.

Fed Decision SVI


How about the price of gold? A reading below 2 can only be described completely off the public's radar screen.

The Price of Gold SVI


Fear always shakes out the weak hands. Ignorance is the ally of fear.

Source: google.com