Apologies to all of you for failing to post for over a week.
I've had to do real work.
And yes, I hate it when that happens.
Thanks to all of you who've assumed that I had run out of ideas and had sent so much stuff.
A lot of it is really good.
I'm on it.
Maybe that pesky "Global Warming " is a good thing.
The next one is sort of new. The comment up until now has been that the Chinese are fed up and are looking at replacing the dollar as the world's reserve currency with a basket of currencies that includes Gold.
The fact that this quote comes out of the editorial section of the Wall Street Journal is pretty big.
Indeed, gold is viewed by central banks the world over as a unique reserve asset. Contrary to monetary assets denominated in national currencies, its status cannot be undermined by inflation in the issuing country, nor is it subject to repudiation or default.
Which suggests that perhaps it is time to make available to the American public the sort of insurance against dollar depreciation that monetary authorities have long sought for their own portfolios. For those citizens who've become skeptical of the Fed's ability to guarantee price stability in terms more meaningful than elementary CPI statistics—or who believe the bigger threat to their personal financial security lies in a potential repeat of the last debacle — why not provide a new class of Treasury obligations that would guarantee purchasing power of the dollar in terms of Gold? Judy Shelton, WSJ 1/8/09
Two Thousand Billion?
That's Two Trillion
A trillion here, a trillion there, pretty soon you're talking about real money.
The first two charts are from articles written in 2008.
Click the chart, go to the article.
This one is pretty simple, if the dow is at 10400 and gold is at 1120, the ratio is 10,400/1120= 9.2875
We've had highs around 42, and lows near 1.
This one is short and sweet, if you're short on time, click below.
There are quite a few sites referencing this chart with everything from embedded interviews with Professor Shiller who developed the chart to third party analyses.
I link my favorite here because the writer uses the phrase "Congressional Moron" repeatedly
WASHINGTON, September 29, 1999 In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
The Treasury Department said it has removed the $400 billion cap on the money it will provide to keep beleaguered mortgage giants Fannie Mae and Freddie Mac afloat. The news followed an announcement Thursday that the CEOs of Fannie and Freddie could get paid as much as $6 million for 2009, despite the companies' dismal performances this year.
Already, taxpayers have shelled out $111 billion to the pair, and a senior Treasury official said losses are not expected to exceed the government's estimate this summer of $170 billion over 10 years.
The highest-paid federal employees are doing best of all on salary increases. Defense Department civilian employees earning $150,000 or more increased from 1,868 in December 2007 to 10,100 in June 2009, the most recent figure available.
Average compensation by industry