Dear Friends,
Today is the same as yesterday, and the day before, and all the days before that.
- At 4am in comes the ESF and the Big Six into the euro and gold market.
- At 7am the Spin begins.
- At 9am the Gold Gang barfs one more time.
All the spin and stabilization cannot prevent the imminent consequences from the bailing out of every bank and financial agency that has issued OTC derivatives.
The consequence is a form of the Weimar experience. The consequence is Gold at $1650. The consequence is a substantially lower dollar.
Spin and stabilization cannot stop the onslaught of these consequences. Bernanke cannot play the Hawk without trashing what is left of the financials.
Bernanke needs ammunition for further problems so of course he has rates on hold. The show rate, also known as the discount rate, is so low that he needs a point and a half in reserve for the next crisis.
Don't be fooled. Let the fools be fooled.
Sincerely,
Jim
Spin of the day Part 1:
Bernanke Says Rates `Well Positioned' for Growth, Stable Prices
By Scott Lanman
June 3 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said that interest rates are ``well positioned'' to promote growth and stable prices, and that policy makers are ``attentive'' to the impact of the falling dollar.
More?
Spin of the day Part 2:
Dollar Rises Against Euro as Bernanke Says Fed `Attentive'
By Ye Xie
June 3 (Bloomberg) -- The dollar rose against the euro and the yen as Federal Reserve Chairman Ben S. Bernanke said the central bank is ``attentive'' to the implications of the currency's decline.
More?
Fact of the day Part 1:
Lehman May Need to Raise Capital as Analysts See Loss (Update2)
By Ambereen Choudhury and Yalman Onaran
June 3 (Bloomberg) -- Lehman Brothers Holdings Inc. may report its first quarterly loss since going public in 1994, increasing pressure on the company to raise capital by selling stock.
More?
Fact of the day Part 2:
Pickens Says CFTC Probe of Oil a `Waste of Time' (Update1)
By Margot Habiby and Edward Klump
June 3 (Bloomberg) -- A U.S. probe into whether speculators manipulated oil prices up to more than $135 a barrel is a ``waste of time,'' billionaire hedge-fund manager Boone Pickens said yesterday.
More?
