Tag: biiwii.com

i2k12 Back With a Bang

Posted on by The INO.com Team

NFTRH 204 went like this… Crazy talk about the Outer Limits and complete control in the opening segment (It’s All Out the Window Now) and a serious talk about the DML (Dear Monetary Leader), deflationary destruction and the Crack Up Boom in the Wrap Up segment.  In between was a whole lot of nuts and bolts functional analysis of the situation.  Anyway, here’s the other half of the bookend…

Dear Monetary Leader is ushering in a brave new world and we will have to be nimble and ever in possession of a functional filter or better yet, bs detector.  I believe this is it, the beginning of the end game.  It is funny to think that so many months ago this letter had come up with another one of its little buzz phrases in ‘i2k12’ (inflationary 2012), which I had imagined holding sway in the second half of 2012 after the deflation scare had reloaded the will of policy makers to inflate.

Now we are here and I must admit there were times when I was brought to my figurative knees with respect to that view.  That is what markets do; they humble you and challenge you to be the best you can be.  That is probably the biggest reason I love this so much. Continue reading "i2k12 Back With a Bang" →

It's All out the Window Now

Posted on by The INO.com Team

In the run up to Thursday’s FOMC announcement of open ended ‘asset’ (mortgage debt) purchases, ZIRP extension and Twist continuation, NFTRH had been using the average US presidential election cycle, sentiment backdrop and of course technical analysis to stay bullish (with associated rising risk profile).  We had incorrectly minimized the potential for QE right here and now in the interest of not running with an increasingly over bullish herd and with respect to risk management.

Well, that is all out the window now because the US has apparently conspired with Europe to jointly enter the currency depreciation sweepstakes with the US springing out of the gate to a healthy lead.  Sentiment is becoming dangerous, speculation is breaking out and liquidity warning indicators like the Gold-Silver ratio, US dollar, US Treasury Bonds, TED Spread and LIBOR have all been dispatched on a southward journey in the interest of greed, speculation… and desperation.  This is the moment of maximum hubris by Ben Bernanke and powerful policy makers the developed world over. Continue reading "It's All out the Window Now" →

Bernanke Plays it Perfectly

Posted on by The INO.com Team

From last week’s opening segment:

“Another way to look at it is that the market’s fate appears to rest with the jawbone of the man about to speak at Jackson Hole on Friday.”

From last week’s closing ‘Wrap Up’ segment:

“I think the theme now is that if you are a trader and if you have profits it is a logical time to take some or all of them.”

We know that the decelerating economic backdrop (with inflation measures in check) is supportive of a Fed going unconventionally dovish in unleashing QE style policy if it so chooses.  We also know that the political backdrop is not supportive, with Republicans sounding off about a gold standard and a soon to be former Fed chief. Continue reading "Bernanke Plays it Perfectly" →

"Political, Economic Potholes Along the Yellow Brick Road"

Posted on by The INO.com Team

MarketWatch has a piece today on the recent headline making noise out of the GOP about a return to the gold standard.

GOP's Gold Standard Idea Isn't Likely to Shine

"The gold standard, it is argued, would foster economic stability and prosperity, primarily by creating price stability, fixed exchange rates and placing limits government deficit spending as well as trade imbalances. It would also limit credit-driven boom/bust cycles through constraints on the supply of money."

Yes, absolutely.

"Opponents argue that the gold standard would limit the flexibility of governments and central banks in managing economies, restricting the ability to adjust money supply, government budgets and exchange rates. Opponents also point to the inflexibility of the gold standard, which may have contributed to the severity and length of the Great Depression." Continue reading ""Political, Economic Potholes Along the Yellow Brick Road"" →

Gold's Road to Nowhere

Posted on by The INO.com Team

From 'Road to Nowhere' by the Talking Heads:

We're on a road to nowhere come on inside. Takin' that ride to nowhere we'll take that ride. Maybe you wonder where you are I don't care. Here is where time is on our side  take you there.

From the US Federal Reserve's website and the sub-section The Federal Reserve's Response to the Crisis: Continue reading "Gold's Road to Nowhere" →