The 'Helicopter
Economics Investing
Guide' is meant to help
educate people on how to
make profitable investing
choices in the current
economic environment.
We have coined this term
to describe the current
monetary and fiscal
policies of the U.S.
government, which
involve unprecedented
money printing. This is the
official blog of the New
York Investing meetup.
Economics Investing
Guide' is meant to help
educate people on how to
make profitable investing
choices in the current
economic environment.
We have coined this term
to describe the current
monetary and fiscal
policies of the U.S.
government, which
involve unprecedented
money printing. This is the
official blog of the New
York Investing meetup.
Urgent Investors Briefing
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Urgent Investors Briefing
© 2010 realefinancemedia.corp - all rights reserved
Japan and U.S. You
Can Believe In'
Daryl Montgomery
Can Believe In'
Daryl Montgomery
economy. Japanese stocks and U.S. stocks respectively rallied strongly on these
essentially negative news items.
The Japanese have been trying to fix their economy for twenty years. They have
engaged in one stimulus program after another after another after another after
another and it's still dead in the water. Despite the repeated failure of the approach
they have taken, this doesn't deter them from engaging in the same behavior again.
There is no reason to believe things will be any different this time. Nevertheless, the
mainstream media cues the cheerleaders and dutifully reports this as good news,
instead of pointing out that the need for a new stimulus program indicates all the
previous ones have not worked. That sounds like bad news to me.
The U.S. monetary and fiscal authorities seem to be doing their best to imitate the
Japanese. The Fed though has only had three years to follow them on their road to
perpetual economic failure. Bernanke's statement on Friday was made from the Fed's
annual meeting at Jackson Hole, Wyoming, which the media described as a 'confab'
(confab is short for confabulation, which in psychiatry means 'the replacement of a
gap in a person's memory by a falsification that he or she believes to be true' -
unquestionably an important concept when dealing with establishment economists).
What exactly was Bernanke implying when he said that the Fed would be doing all
that it can to support the economy? Does this mean that it wasn't doing all that it
could have done previously? In at least one sense the answer to that question is yes.
The Fed could have opened the floodgates of uncontrolled money-printing and
Bernanke was intimating that this is what is going to be happening in the future.
While the Fed and its cohorts in the economic community continue to maintain that
there will be no double-dip recession, Intel threw some more cold water on this
expectations after raising them only a month earlier. PC sales have been running
below previous forecasts. This is a strong blow to the U.S. economy since computer and
software sales were up 24.9% in the second quarter GDP report. A drop to a negative
number for this category could turn the entire third quarter GDP negative. But don't
worry, Ben Bernanke will be handling the situation and we all know what an excellent
job he's done previously in fixing the economy. Wait, isn't that a confabulation?
Daryl Montgomery
essentially negative news items.
The Japanese have been trying to fix their economy for twenty years. They have
engaged in one stimulus program after another after another after another after
another and it's still dead in the water. Despite the repeated failure of the approach
they have taken, this doesn't deter them from engaging in the same behavior again.
There is no reason to believe things will be any different this time. Nevertheless, the
mainstream media cues the cheerleaders and dutifully reports this as good news,
instead of pointing out that the need for a new stimulus program indicates all the
previous ones have not worked. That sounds like bad news to me.
The U.S. monetary and fiscal authorities seem to be doing their best to imitate the
Japanese. The Fed though has only had three years to follow them on their road to
perpetual economic failure. Bernanke's statement on Friday was made from the Fed's
annual meeting at Jackson Hole, Wyoming, which the media described as a 'confab'
(confab is short for confabulation, which in psychiatry means 'the replacement of a
gap in a person's memory by a falsification that he or she believes to be true' -
unquestionably an important concept when dealing with establishment economists).
What exactly was Bernanke implying when he said that the Fed would be doing all
that it can to support the economy? Does this mean that it wasn't doing all that it
could have done previously? In at least one sense the answer to that question is yes.
The Fed could have opened the floodgates of uncontrolled money-printing and
Bernanke was intimating that this is what is going to be happening in the future.
While the Fed and its cohorts in the economic community continue to maintain that
there will be no double-dip recession, Intel threw some more cold water on this
expectations after raising them only a month earlier. PC sales have been running
below previous forecasts. This is a strong blow to the U.S. economy since computer and
software sales were up 24.9% in the second quarter GDP report. A drop to a negative
number for this category could turn the entire third quarter GDP negative. But don't
worry, Ben Bernanke will be handling the situation and we all know what an excellent
job he's done previously in fixing the economy. Wait, isn't that a confabulation?
Daryl Montgomery