Month: October 2010

Ben Bernanke: Codependent in chief

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From Marketwatch.com:

Federal Reserve Chairman Ben Bernanke called on Congress on Monday to adopt tougher budget rules even as the nation’s top central banker warned against taking deficit-cutting action too soon.

Still, Bernanke also warned against tightening too quickly and reportedly said more asset purchases by the Federal Reserve could help the economy.

The government’s addiction to debt and deficit spending is being enabled by the Federal Reserve which is buying its debt with money that is created ex nihilo.  So if Bernanke wanted, he could stop the addiction.  It’s like the wife who responds to her alcoholic husband who has asked her to bring him a drink, “Dear–you really must stop drinking so much … Would you like that on the rocks?”

Meanwhile, gold has climbed to $1330.

Global warming videos: a comparison and contrast

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Here is a video made by a group trying to promote reduction of our personal carbon footprint:

Now watch a video by those who mock the idea of anthropogenic global warming:

Now my question is, who would you rather associate with?  The people who made the first video or those who made the second one?

The Gold Bubble? What Gold Bubble?

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Monty Pelerin produced the following list on his blog today:

COMMODITY PRICE % INCREASES YEAR OVER YEAR

Agricultural Raw Materials 24%
Industrial Inputs Index 25%
Metals Price Index 26%
Coffee 45%
Barley 32%
Oranges 35%
Beef 23%
Pork 68%
Salmon 30%
Sugar 24%
Wool 20%
Cotton 40%
Palm Oil 26%
Hides 25%
Rubber 62%
Iron Ore 103%

Commentators are often speaking about Gold as the mother of all bubbles.  Gold is up 30% over the same one-year period. Why do people talk about a gold bubble? It would make more sense to talk about an iron ore bubble, a rubber bubble or a cotton bubble. What about the oranges bubble? The gold bubble? What gold bubble?