Grandich Musings

Posted by on October 3, 2016 - 9:20 am


  • A part of this interview took words right out of my mouth. Here they are:

“We have an interventionist central bank—a global cartel of interconnected central banks actually—that is determined to use untested (read: flawed) models to try to repair an economy that was hurt by their policies and would fix itself if the Fed would just get out of the way. I think these guys are what Nassim Taleb calls I-Y-I (intellectual-yet-idiot). They will continue with their experiments until the system finally breaks in earnest. They will blame the unforeseeable circumstances.

The social contract on the home front is faltering badly. When the system started to fail in ’09, we stitched up a putrid wound without cleansing it. We needed reform of a highly flawed banking system corrupted by poor incentives. In the 1930s, the Pecora Commission rounded up scoundrels (including the head of the New York Stock Exchange) and threw them in prison. We should have hung a few in the town square, but instead the Obama Department of Justice punished shareholders and savers. A scandal at Wells Fargo emerging just this week, for example, led to a token fine while leaving some wondering if Wells Fargo is too corrupt to exist in its current form. It is not the government’s job to break up these institutions, nor should it save them.

We have stirred up a mess in the Middle East that seems to be washing up on our shores. (This weekend there were a half dozen attacks that appeared highly correlated to all but those in the politicized press.) Our policy in Syria is incomprehensible. The refugee crisis in Europe is our doing, and it is spreading. Fear of Trump seems odd given that the current neocons in liberal garb are stunningly militaristic. I think they are war crimes.  Meanwhile, these I-Y-I’s insist on poking Putin in the eye with a stick as part of a policy that appears to be designed to take us to the brink of far greater armed conflict.

People are now mad, and it shows in the chaotic election. We are guaranteed to elect a president that half the populace finds repugnant. It’s hard to imagine that the post-election temperament will improve. Change is in the air.”

  • It’s a good thing I’m out of the soothsayer racket because this comment that Yellen is even thinking of having the FED buy stocks and bonds in the open market, would have me going short and just seeing this 24/7. She’s already got some fighting mad.
  • The “phony” rumor Friday on a much lower fine against Deustche Bank did the trick, but know IMHO (and that of others), it’s just the tip of the iceberg.
  • Economic Hell – all aboard?
  • I own just two stocks, some gold and cash. I would welcome a dip below $1300 gold to add to my personal position. This commentary gave me 50 slides to justify my personal stance. And no, I’m not one of these guys but worthy to take note of it.

“To be nobody-but-yourself — in a world which is doing its best, night and day, to make you somebody else — means to fight the hardest battle which any human being can fight; and never stop fighting.”  E.E. Cummings

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