And never the twain shall meet...
- Rudyard Kipling
The Chinese are up in arms about the last-minute settlement struck between the Senate, House and the President. One would think that there is a propaganda spin on what they're saying in China, which is partially true, but what they really are bothered by is that the deal in Washington will do a number of things that are bad for Chinese financial projections.
First, as we saw today in spades, the dollar will weaken. Second, the yields on bonds will be driven down, which also happened today as the 10-year... Read more
Up, down, trying to get the feeling again...
- Barry Manilow
No one likes what's been going on in Washington. For some time, we will be dealing with the fallout from the brinksmanship that has been playing out for the last month. And there is another future battle barely over the next hill. That is, should Speaker of The House John Boehner be able to herd his cats into a vote. If he can't, well, the United States will set sail for the uncharted waters of default and every person on the planet will pay the price.
What the long term fundamental effects will... Read more
Today gold acted the way gold is supposed to act. As the end of this ridiculous Washington drama comes closer, when there was a deal (boding certainty) gold fell and when the extremist wing of the House came forward yet again with some new, unacceptable tweaks, gold rose (uncertainty).
You have to hand it the right wing of the Republican Party - they certainly know how to make an entire country, and entire world sweat. But apparently, if we can keep with the drama theme here and quote Shakespeare from Macbeth:
It is a tale
Told by an idiot, full of sound and fury
... Read more
The risk of a wrong decision is preferable to the terror of indecision.
- "Moses" Maimonides, 12th century Jewish rabbi/philosopher
Not to decide is to decide.
- Harvey Cox, liberal 20th century theologian
Indecision is as old as the human race. In Washington that failure to decide is setting everyone on tenterhooks. The equities markets seem to like the promise of a deal, regardless of the deal, as Rebe Maimonides says above.
On the other hand, gold, silver, and bond yields have not shown... Read more