A Sober View of Neo-Capitalism
The real action behind the scenes. This is monumental. No, “GENERATIONAL”. No… it’s… it’s …
Politics aside, the reality is thus, according to my dogma, the Financial Times:
Lawrence Summers, senior economic adviser to Barack Obama, US president, told the Financial Times recently that the Group of 20 countries should agree to boost government demand. On Monday Christina Romer, chair of the White House Council of Economic Advisers, said: “The more that countries throughout the world can move toward monetary and fiscal expansion, the better off we will all be.” (emphasis mine)
Jean-Claude Juncker, chair of the “eurogroup” of ministers, said: “The 16 finance ministers agreed that recent American appeals insisting Europeans make an added budgetary effort were not to our liking.”
Na ah, he did not just say that, uh uh….
Seriously folks, is this really happening? An ultra unorthodox liberal cramming idealistic socialism down the throats of the neo-liberal Europeans? Pinch me. I must be dreaming.
But European ministers are concerned that building up more government debt would threaten the stability of the eurozone and say that they want to assess the effects of spending boosts that have already been passed before considering more. The US Treasury declined to comment on their remarks on Monday.
Oh, I get it now. So what they’re really saying is that:
FINALLY, WE CAN GET ON WITH THE BUSINESS AT HAND, WHICH WE’VE BEEN SAYING FOR THE PAST 40 YEARS: STATE PARTICIPATION WITHIN THE CIVIC FOUNDATION OF SOCIETY IS NECESSARY AND CRUCIAL TO A SOLID FOUNDATION TO A GLOBAL ECONOMY. The Forbest 500 can get on with it.
A new European Union policy paper, due to be approved by finance ministers today, calls the prospects of a return to economic growth next year “highly uncertain”.
Ouch. I do recall hearing this over the audio squawk during market hours, and the market went into a sharp sell-off. These days, that’s more likely to be a bear raid during a vulnerable moment in the tape. Either way, a professional trader should not forget to pay attention to these minor details.
After the powerful bear market rally of the prior two days, gold and bonds are both being bid higher. The Yen is starting to rally. Asian stocks couldn’t pick up on strength in US equities. Market breadth is deteriorating. Watch out below…
