Jim,

Watch bonds closely!

CIGA Eric

Click chart to enlarge

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Dear Eric,

When the long bonds break down it will be the result of a currency situation (dollar) more so than a economic activity induced market action.

Regards,
Jim

Jim,

And so it grows, globally…

Dutch Central Bank takes control of DSB Bank after a bank run caused by collapsed talks to sell the Bank to a Dutch Banking Consortium. The Dutch of course being mercantilists, par excellence, know a bad deal when they smell one… and obviously weren’t threatened, a la Paulson. Another day, another Nationalization. (source FT, Page 1, Swiss edition).

The UK is selling its interest in the Channel Tunnel and £16 billion of other State Assets, including £13 billion of government owned property. (For Americans readers use a multiple of 5x (population) plus currency exchange rate (1.58) to get your relative dollar figure.) Why call it privatisation when it’s obvious it is a fire-sale. When all else fails, sell the family silverware. It might get you through the next week before a vote of no confidence in Parliament. (source: DO).

Meanwhile, China buys everything on the cheap because they, unlike the "advanced" economies, are neither stupid nor broke.

Regards,
CIGA Pedro

Jim,

Here is an amazing cartoon from the Chicago Tribune in 1934. Look carefully at the plan of action.

Remember the adage, "Those who do not remember the past are doomed to repeat it"

CIGA Dr. Bob

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