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Stock futures are moving sharply lower after hours based on reports such as this: US Calls Radiation 'Extremely High' and Urges Deeper Caution.
The emphasis was clearly on the risk in Japan today. The Middle East situation continues to deteriorate.
The PPI and import prices are rising at a rate that suggests inflation, and continuing sluggish growth in GDP suggest stagflation is developing.
Stagflation, when not caused by an exogenous event such as occurred in the 1970s with the oil embargo, is the result of an obvious policy error in fiscal, public, and monetary decisions.
It takes an unusual set of circumstances to create stagflation. Before the 1970's economists used to say it was not possible.
Therefore it is a tribute to Obama's Wilsonian dithering, Bernanke's general spinelessness, and the Congress' rapacious venality that they will preside over stagflation's resurgence, without the scapegoat of an oil embargo to blame. They are presiding over the wholesale looting of a generation, and abetting the tranfer of that money and the future prosperity of the public to a wealthy few, their real constituency, in the manner of an oligarchy or crony capitalism.
"It was curious to think that the sky was the same for everybody, in Eurasia or Eastasia as well as here. And the people under the sky were also very much the same--everywhere, all over the world, hundreds or thousands of millions of people just like this, people ignorant of one another's existence, held apart by walls of hatred and lies, and yet almost exactly the same--people who had never learned to think but were storing up in their hearts and bellies and muscles the power that would one day overturn the world."
George Orwell
The EU Energy Chief made some comments about the likelihood of a major radiation disaster in Japan, which may be underway. This caused US equity markets to plunge dramatically.
Energy Commissioner Günther Oettinger said the situation is 'effectively out of control' ...
The markets are getting very mixed news on this, depending on the source. There are weighty papers from MIT saying the risks are minimal, and the US Ambassador in Tokyo issued reassuring words this morning.
Therefore traders are jittery because of the uncertainty regarding the quality of information being released from a variety of sources, and some thinking that there is understatement of the risk by the Japanese government and Tokyo Electric in order to avoid a panic. So the bias is to act first and fact check later.
This is what is called a "trader's market." Triple black diamond slopes IF you can handle them. Danger, une chute dans cette piste peut entrainer de graves lesions et meme la mort. Most people should stay off the slopes and enjoy their coffee in the lodge.
EU Official Warns of Possible Catastrophe In Japan
This is known as the 'Humps and Chumps' Paper Metals Conference.
If you short enough bullion, you get a free ticket, but Bullion Banks are permitted to bring in 100 attendees on 1 ticket.
Business attire required, but hedge fund managers may prefer to wear a wire and have a prior grant of immunity.
Do you think Andrew Maguire will be giving the Keynote Address?
Wow, 'networking' with the boyz. Sounds great.
Oh you're a silver bull. Gold too, huh?
So, you like Huey Lewis and the News?
Their early work was a little new wave for my tastes...
Try getting a reservation at Dorsia now...
