Things were a bit more hectic than usual here at our Baltimore HQ, this week. It was the week before Memorial Day and office workers seemed to go missing with odd frequency - knowing that they wouldn't be seen again until the following Tuesday.
But here at The Daily Reckoning we never really stop working...especially in times like these. Things need to be reckoned with daily, even during long holiday weekends. And so we've put together Weekend Edition of the DR for your consideration.
Bill Bonner was reckoning with Congress on Capitol Hill this week and shares that experience with us in the excerpt below...
Yesterday...we ventured into "Bubble World."
"What's going on? When will this be over? How bad do you think it will get? What can we do to turn this around?"
Members of Congress have the same questions the rest of us have. They read the same claptrap in the newspapers. They hear the same balderdash explanations from economists and federal officials. They're wondering what is really going on.
Not that we know. But they asked us anyway.
We report to you today from the banks of the Potomac. Our old friend, Congressman Ron Paul organized an off-the-record discussion with several other members of Congress. The subject was the financial meltdown...and the bailout. We were there to talk, of course, but we were more interested in listening.
"You don't understand," said a Senate functionary we met later, "these people live in Bubble World. They're protected from the real world by their staffs and by the system itself. You imagine that they would know what is going on. But they don't. They know less than we do. And they'll be the last to find out. They are so busy meeting constituents...dealing with donors...working out deals with their political parties and supporters...and feeling like big shots...they don't really have any time to study the issues. So they count on staff and party committees to tell them what to say, how to vote...and what to think."
Waiting in the corridor of the Cannon building, two men in grey suits walked by...we overheard this conversation:
"Did you vote 'no' on that last resolution? You we're supposed to vote 'yes.'"
"I thought I was supposed to vote 'yes' to cutting off the argument...as far as I'm concerned we've heard enough about Nancy's problem with the CIA..."
"But that wasn't about cutting off the debate, that was just technical...about allowing them to modify the previous vote..."
"What are you talking about?"
"I don't know...I didn't think it had anything to do with stopping all this gabbing about Nancy and the CIA..."
And so goes the empire
"Which will it be? Zimbabwe or Japan? Will it be runaway inflation...or deflation that refuses to run anywhere? Long suffering Daily Reckoning readers already have our answer. We gave it even before the bubble burst in '07/'08. 'Yes!' we said...it will be Zimbabwe AND Japan. But not in that order. Japan first. Then, after the feds have got the hang of Quantitative Easing, it's Zimbabwe here we come! But there's gotta be a surprise, right? It can't be that simple, can it?"
A Permanent Credit Contraction
by James Howard Kunstler
Saratoga Springs, New York
"For now, the 'bottom' is in - that is, the bottom of this society's ability to process reality. It may continue for a month or so, but events are underway that are beyond the command of personalities. We're done 'doing business' in all the ways that we've been used to, but we just can't get with the new program. Let's count the ways: The revolving credit economy is over...The suburban living arrangement is over, along with all its accessories and furnishings...The Happy Motoring fiesta is over...Our food production system is approaching crisis."
Obama's Magic Bubble Deflator
by Thomas E. Woods, Jr.
Auburn, Alabama
"...Check out this headline from a piece from several days ago on Politico: 'Obama Would Regulate New "Bubbles."' Yes, you read that right. 'Bubbles' just occur spontaneously. They have no cause or explanation. We need government to identify and destroy them. Sometimes I wish our overlords would get their stories straight...How are we peons to decide between the competing views of our infallible maestro on the one hand and the man who would be FDR on the other?"
Get Wise
by Alexander Green
Charlottesville, Virginia
"In her book Philosophy: Who Needs It, Ayn Rand argues that all of us have a philosophy of life, whether we know it or not. 'Your only choice,' she writes, 'is whether you define your philosophy by a conscious, rational, disciplined process of thought...or let your subconscious accumulate a junk heap of unwarranted conclusions...' What's true of life is also true of investing...Over the past two decades, I've dealt with thousands of individual investors, some highly astute, some rank novices. Many had only the foggiest notion of what they were trying to achieve - or how."
An Avalanche of Claptrap
by Bill Bonner
Washington, D.C.
"Illusions pile up... They're sure to come down sooner or later. Like snow at high altitudes, the central banks' new money is piling up. As reported last week, all the world's major central banks have turned on their snow machines. The US Federal Reserve has been authorized to 'print' $1.75 trillion worth of new money in order to buy Treasury bonds... 'Quantitative Easing' it is called. As a refresher for readers with real lives and better things to do, QE is how central banks describe what is essentially an act of counterfeiting. They buy bonds with money created - electronically - specifically for that purpose. Abracadabra - 'money' comes into being."
And before we bid you a final adieu, let us just remind you: if you haven't already, make sure you sign up the 2009 Agora Financial Investment Symposium in Vancouver, Canada. The conference is rapidly approaching, and officially marks the 10th anniversary of The Daily Reckoning!
Join us in July as we gather to celebrate a full "Decade of Reckoning." You'll have the chance to meet all your favorite writers and speakers over the course of four days that will uncover for you the profit opportunities of the next ten years.
This event will surely sell out...so secure your spot ASAP. Call Opportunity Travel at (800) 926-6575 to make your arrangements or click here for all the info...
No comments:
Post a Comment