16 February 2011

US Budget Expenditures - CBO Long Term Outlook


Obviously one can question their growth assumptions, and therefore tax revenue assumptions.

However bear in mind that this chart is for the expenditures as a percentage of GDP, and is therefore tied to the growth.

Personally I would think that they would lowball the interest payments, which are not so tied to the CPI as COLA increases in things like Social Security.  Bondholders are not as captive an audience as your old people.  

But as I always say, until the financial system is reformed and the economy is brought back into balance, nothing will 'work,'  whatever combination of austerity, stimulation, growth, and tax changes it may include.  This discussion is the misdirection and distraction, the financial magician's tools, from the actual transfers of wealth being conducted, those transfers being a nice way of saying 'looting.' 

The US resembles post Soviet Russia just prior to its currency collapse and the rise of the oligarchs who sought to monopolize productive assets which they bought with paper and financial manipulation.    Communism died, and it ended in oligarchy.  Democracy is dying, and it too will end in oligarchy, unless something is done to change the outcome. 





15 February 2011

SP 500 and NDX March Futures Daily Charts


As a reminder this is an option expiration week in US equity markets.

Volumes remain thin.

A friend Lee Adler thinks that the sale of the NYSE to the Deutsche Bourse could mark a top in equities. And he might be right. He cites some precedents for this sort of deal capping a big run in stocks.

As I mentioned yesterday I believe that US equities are now in bubble territory and vulnerable to a 5 to 10 percent pullback. However, with Uncle Thug plying its favorite Banks with paper, I would not wish to get out in front of this. Still, it would be typical to see something start around an option expiration.



Gold Daily and Silver Weekly Charts



As I have said, I expect there to be some 'action' around the option expiration this Friday.



A Big Money Playah Hammered PHYS Into the Close



What up?