Friday, October 14, 2011

Days of Reckoning Are Here: Accumulate Precious Metals and Hard Assets

The Atomic Bomb that is About to Explode at the Federal Reserve

The "Book-Cooking" Index Soars To All Time Highs

Everyone has heard of the Big Mac Index, the Misery Index, even the Shoe Thrower Index. But the Book Cooking Index? This latest addition to the compendium of oddly named yet extremely fascinating "indices" is based around the statistical irregularity known as Benford's law, according to which within sets of numbers that span orders of magnitude, the distribution of first digits is strikingly regular: numbers beginning in 1 occur about 30% of the time, those beginning in 2 about 18% of the time, falling to roughly 5% of the time for the number 9. Specifically, as noted by the keenly observant Jialan Wang of Washington University in St. Louis, "there are more numbers in the universe that begin with the digit 1 than 2, or 3, or 4, or 5, or 6, or 7, or 8, or 9.  And more numbers that begin with 2 than 3, or 4, and so on.  This relationship holds for the lengths of rivers, the populations of cities, molecular weights of chemicals, and any number of other categories." The most curious application of this law resides in the field of corporate fraud, "because deviations from the law can indicate that a company's books have been manipulated." Here is where things get interesting for fraudulent corporate America: the inquisitive Wang "downloaded quarterly accounting data for all firms in Compustat, the most widely-used dataset in corporate finance that contains data on over 20,000 firms from SEC filings" and "used a standard set of 43 variables that comprise the basic components of corporate balance sheets and income statements." Her results were, in a word, startling.

It Begins: Harrisburg Files For Bankruptcy Protection

Banks turn to demolition of foreclosed properties to ease housing-market pressures

Buckle Up:  America Is Getting Very Angry And The Protests Are Going To Become Much More Frightening

Millions Could Lose Unemployment Benefits In 2012

Wall Street Sees "No Exit" From Woes

Roubini:  Double-dip Recession A Foregone Conclusion

Grassroots distrust of banks powering gold, Hathaway tells King World News



Kevin Michael Grace: Auguries -- Fort Potemkin



In The News Today

Dear CIGAs,

What does gold need? What does gold want? A return to front door QE3.
Gold will get its wish with Eurobonds leading this QE parade.
QE to Infinity looks like the following:

Jim Sinclair’s Commentary

This union has an interesting sense of humor.

Greek Finance Ministry Workers Block Access to Athens Building
By Tom Stoukas – Oct 12, 2011 12:08 AM MT
Greek finance ministry workers blocked access to the ministry’s main building in central Athens as part of protests against government plans to cut jobs and wages.
Members of the Federation of Finance Ministry Unions hung a banner reading ‘Occupation’ from the roof of the eight-story building and hoisted black flags around the roof. The federation plans a nine-day strike beginning Oct. 17, according to an e- mailed statement today.



Jim’s Mailbox


Inflation, inflation, inflation.


Jim Rogers: Bernanke Is Lying to Us
Tuesday, October 11, 2011
Jim Rogers tells it like it is.
In the EPJ Daily Alert, I have been pounding away at the fact that no new QE is required, that the money supply (M2) is exploding. Rogers correctly points to this money growth in the clip below.
Also, Larry Kudlow is correct in his view that the European Central Bank is likely to join the Fed in the money printing. If they do, it will be the first time ever that the world could face a massive global inflation.
Kudlow is correct that the stock market will skyrocket under these conditions and Rogers is correct that commodities will soar.
Prepare yourself for climbing prices like you have never seen before, to differing degrees both Rogers and Kudlow know what is coming.

Fed leaves door open on QE3

The door that controls access to QE(n) fell off its hinges long ago. Any comment that implies monetary restraint is nothing more expectations management.

Headline: Fed leaves door open on QE3
NEW YORK (CNNMoney) — Federal Reserve policymakers left the door open to another round of asset purchases in the near future, according to minutes of their most recent meeting.
At the two-day meeting that concluded Sept. 21, the Fed unveiled plans to sell short-term Treasuries and buy longer-term debt, a move popularly known as “Operation Twist,” in an effort to drive down interest rates without pumping additional money into the economy.



Please consider making a small donation, to help cover some of the labor and cost for this blog.

Thank You

I'm PayPal Verified

No comments:

Post a Comment