The Golden Truth: Is Christine Romer Mentally Handicapped?

Monday, October 26, 2009

Is Christine Romer Mentally Handicapped?

This is a serious question. The following statement from her is, unequivocally, the dumbest comment I have ever seen issued by a public employee in a position which gives them influence on public policy:

"White House: health reform key to tackling deficit" Article Link

Talk about an oxymoronic concept: Government program and fiscal austerity.

7 comments:

EconomicDisconnectMonday, 26 October, 2009
"White House: health reform key to tackling deficit"

I think she meant the health care reform will cause us to be tackled BY the deficit, otherwise I have no explanation!

One down day and I am seeing plenty of traders getting ready for gold at $986 on it s way to $820. I wish it would go to zero, then we could BUY IT ALL!
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Dave in DenverMonday, 26 October, 2009
gyc, that's a hilarious comment on Romer.

I've been doing gold/silver now for almost 8 years. During that time, you know gold is in the middle of an unstoppable move higher when "experts" come out of the woodwork with "market at a top" and "big correction coming" calls.

The best is when Prechter comes out and calls for gold to go back to $100. I remember when gold was tackling $400, Prechter came out and issued a "gold going to $50" call and all the market shadow traders dumped their positions and had to pay well over $400 to reload. Prechter recently issued another "gold to collapse in price call." Thanks Bob.

The other moron is Gartman. I hate it when he gets long gold, because gold drops $50 almost every freaking time he gets long. He's a little better with his sells. Although, I remember in late 2005, he sold at $550 and said he would wait until $400 or $450 to reload. Gold coiled around $550 for a short time and went on to top out over $700 in May 2006. Right now Gartman is neutral to bullish, but thankfully has not added any recently.

Right now I am looking for gold to continue moving sideways while the Fed steps on gold and props the dollar during this week of heavy Treasury issuance. This has been the pattern since March. I believe gold will start moving higher again in early November. I think there's a chance we'll see $1200 before Christmas.

That's how I'm trading gold/silver/miners right now. I believe by May we'll be looking back to late October with disbelief at how cheap $1040 gold was.
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EconomicDisconnectMonday, 26 October, 2009
Dave,
I just finished tonights post and I hit the "prop the dollar for the bond sales" angle as well. The buck moved up a whole point today!! A 1/75th move and the whole market is acting retarded. BIDU did not help things AH.

I cannot wait for Quant Easing 2.0 to roll out somewhere in Jan/Feb. Call me back about Gold $100 then.
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Dave in DenverMonday, 26 October, 2009
LOL. QE 2.0 might roll out before Jan. They're already writing Stimulus 2.0 in Congress...saw your blog post and added a post about football.
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EconomicDisconnectMonday, 26 October, 2009
Dave,
you commented on the last post, I have fresh stuff up!

You are right though, east coast gets killed on Sunday/Monday night games. I get up at 5am all week and a midnight bedtime does not help things.
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Dave in DenverMonday, 26 October, 2009
Actually, I meant to put that comment under your post tonight.

You should go to www.lemetropolecafe.com and do the free 2 week trial. All you need is an email address - no credit card required. Read the nightly post under the James Joyce Table. That's Bill Murphy's Midas report. I don't know how anyone can play in the gold and mining share market without reading Midas every night (he publishes M-F and occassionally on the weekend).
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EconomicDisconnectMonday, 26 October, 2009
Dave,
I am already there, thanks so much for the tip, best content on the web re metals!
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.