Stocks Rally After Plan for Tax Break Extension- Reuters
The S&P 500 index hit a new 2010 intraday high at the open on Tuesday as investors bet that a deal to extend tax breaks will prompt increased spending and buoy the economy.
Apparently, an announcement of tax cuts [tax cuts that are already in place, so there is no real tax cut] is all this country needed to get the economy moving forward. In theory maybe.
There is no question that the uncertainly surrounding tax cuts going into 2011 has been tying the hands of business with regards to expansion and hiring new employees. But not so fast grasshopper. There is still the issue of Obamacare to contend with for American business owners. And what about this country's voracious debt appetite?
"Extending" tax cuts hardly seems like a good idea in a fiscal environment that sees government revenues falling far short of government expenses. I guess the free ride isn't over yet. With the Fed buying the nation's debt, who needs tax revenues, right? What a delicious little dream world we live in, in America.
Countries in Europe are being FORCED to cut government expenses and RAISE taxes because of their sovereign debt issues, and the USA [the greatest debtor nation on the planet] goes merrily on it's way charging it's existence on the national credit card, and printing money to pay it off. The rest of the World must be enraged about this.
The reaction in the equities markets was positive of course. The players there got exactly what they wanted. The boys in the bond market were not to happy and sold their IOUs. Of course the Precious Metals markets got hit by the government backed bullion banks...the Fed can't have the Truth be told about what these tax cuts really mean to the nation's enduring fiscal calamity. Tax-cut equals bailout. Gold ALWAYS gets stopped in it's tracks on news of a bailout.
Prior to the CRIMEX hit, Gold and Silver hit new bull to date highs:
Gold reached 1428.79 before turning on a dime at 8:45AM, twenty five minutes after the CRIMEX open it's gates to hell.
Silver reached $30.68 before also turning on a dime precisely at 8:45AM.
What are the chances of this "just happening? ZERO! This is just another example of collusive market behavior by government sanctioned crooks operating out of the CRIMEX, Den Of Thieves.
Will this take down hold, and gain traction? Not likely, these crooks, bold as they may appear, are getting freight trained by the bulls in this market that becomes more fundamentally bullish as the hours pass now. Sale prices on the Precious Metals are scooped up like IPads on Black Friday.
A close above $1429 in Gold should lead to a test of the $1500 barrier. Likewise, a move through $31 in Silver, could trigger panic buying up to $33.50 - $35.
Extension of the tax cuts, further relief for the unemployed, and a drop in Social Security taxes only makes America's bigger problems bigger, and throws businesses and the economy a dry bone.
Lies Across America
by James Quinn
Americans love authority figures who act as if they have all the answers. It matters not that these egotistical monuments to folly and hubris (Bush, Obama, Paulson, Geithner, Greenspan, Bernanke) have committed the worst atrocities in the history of our Republic, leaving economic carnage and the slaughter of thousands in their wake. The most dangerous man on this earth is an Ivy League educated, arrogant ideologue who believes they are smarter than everyone else. When these men achieve power, they are capable of producing catastrophic consequences. Once they seize the reigns of authority these amoral psychopaths have no problem lying to the American public in order to achieve their objectives. They know that Americans love to be lied to, so the bigger the lie, the more likely it is to be believed.
Bernanke Is 100% Sure
by James Quinn
Evidently, Mr. Bernanke thinks that the sheeple will just believe him because he is the Federal Reserve Chairman. The truth is that only two things are deflating: middle class wages and home prices. Bernanke certainly has chutzpah when blatantly lying to the American public about inflation. I’m sure none of you drive cars, heat your homes, eat food, or wear clothes.
I’m 100% sure that Ben Bernanke will be wrong again. He will ultimately be known as the professor that never saw the collapse of the USD coming.
By Howard S. Katz
Friday’s Wall Street Journal was full of “optimistic” news for the U.S. economy. It reported:
“Retailers’ reports of robust November sales offered more evidence that the lackluster U.S. economy may finally be gaining momentum, despite stubbornly high unemployment.
“According to 27 retailers tracked by Thomson Reuters, sales at stores open a year or more rose 6% last month, sharply exceeding a year-earlier gain of just 0.5%. Online retailing also showed sizable gains.”
“Shopper Splurge Buoys Hopes,” by Ann Zimmerman and Elizabeth Holmes, WSJ, 12-3-10, p. A-1.
To chart retail sales and present this as something good for the whole country is lunacy, the kind of lunacy knows as Keynesian economics. Retail sales are of interest to retailers. The country does not get any richer via an increase in retail sales. It must be asked, who is doing this extra buying and where are they getting the money? The answer, in this case, is easy. The Federal Reserve is printing the money out of nothing. Can simply printing money create real wealth? Last week we saw Thomas Jefferson’s view that it cannot. And the United States, under the wise leadership of such men, emerged as the leading economy in the world. Today the idiots are crying for a government “stimulus” of the economy, a system which has been tried in a great many countries over the years and has been an absolute disaster every time.
So what is this pickup in sales in November? It is simply the first bit of the newly created money to start making its way through our society to the point where it is visible in the economic indicators. That money will soon cause a general rise in prices, and the result will be that you get poorer. So the retailers get richer, and you (and others like you) get poorer. Can anyone explain how this is good for society as a whole.
It is difficult to understand how idiocy like this gets parroted throughout our society when the only proper place for it is the mental institutions of said society. Less than 10 years ago the pages of the Wall St. Journal were full of articles warning of a massive “deflation,” mostly focused on commodities. Here is what happened.
Everybody Loves Silver!
By: Bix Weir
There has been a lot of negative press about the big banks rigging the silver market, fake silver inventories in large ETFs and regulators at the CFTC not doing their job by enforcing commodity laws in the COMEX Silver markets.
Well, I'm here to tell you to BLOCK OUT all that negativity and sink your teeth into everything GOOD and HONEST about silver! And there is a lot to sink your teeth into because...
EVERYBODY LOVES SILVER!
Silver is the "FEEL GOOD METAL". Unlike gold, the world doesn't need to fall apart for silver to be in high demand. When the economies of the world are ROCKIN' demand for industrial silver explodes as goods made with silver are flying off the shelves. One of the biggest problems in Western economies is the burning demand for clean energy that doesn't rely on Middle Eastern oil. Due to Silver's excellent conductive properties, Silver plays a significant and increasing role in the new solar power infrastructure. Silver can be found in everything from flat screen TV's to washing machines. We ALL use Silver EVERYDAY as it is the most versatile metal in the world.
Silver also plays a very significant role in bad times...in times of trouble. This is because silver has a very established history of being a valuable monetary metal. Silver has been used as money for more than 6,000 years. When all is said and done there are only two real monetary metals...Gold and Silver. Over the last 3,000 years Gold has been the money of bankers and Silver has been the money of THE PEOPLE. As the banker population represents less than 0.01% of the global population, 99.9% of the human population LOVES Silver more than Gold!
Let me show YOU just how much EVERYBODY loves Silver:
JP Morgan Silver Manipulation Explained[VIDEO]
Too big too fail banks like JPM and HSBC have been artificially manipulating the price of silver and gold, scamming the tax payer, and ultimately will lead to the biggest financial disaster in the history of human financial civilization. The run on the comex has begun. The COMEX offered dollars instead of physical metal on December 1st silver deliveries. GAME OVER. [this cartoon is FUNNY AS HELL, enjoy!]
Banks to Taxpayers: Get Over It[REVEALING READING]
by David Weidner
In the throes of an investor panic in the fall of 2008, U.S. financial institutions stuck to their story: We're fine, trust us.
Last week, more than two years later, the Federal Reserve unveiled how those same financial institutions tapped emergency lending programs to survive. The final tally — $3.3 trillion in loans — exceeded even the most skeptical analyst expectations.
The Fed had been hesitant to release the data for fear it could rattle the markets. But the markets actually rose on Wednesday, the day of the release. I have a theory why, which we'll get into later.
The disclosure tells us a lot about how dire the situation was in the darkest days of the credit crisis, but it also tells us some important things about today's banking landscape: It's fragile, it's built on faith — and a lot of extraordinary backing.
The phrase "zombie" banks comes to mind when the numbers are laid bare: Morgan Stanley (NYSE: MS - News) borrowed $61 billion in one overnight loan. Goldman Sachs Group Inc. (NYSE: GS - News) hit up the Fed 81 times for a combined $600 billion. Citigroup Inc. (NYSE: C - News) and Bank of America Corp. (NYSE: BAC - News) borrowed a combined $2.6 trillion under the Fed's primary dealer facility.
Even J.P. Morgan Chase & Co. (NYSE: JPM - News) used the central bank's term auction facility seven times.
Oh, and the banks' way of saying thanks for all of this: Get over it.