There are REAL laws in both the physical and the economic spheres. In both cases, they must be obeyed in order to be commanded. A plane does not fly by “ignoring” the law of gravity. A nation does not grow prosperous by “ignoring” the law that says that what is consumed must first be produced. - Bill Buckler, The Privateer (#719)I s'pose I would be remiss if I didn't make some comment about the Denver Bronco/Baltimore Raven Divisional playoff game being played tomorrow at Mile High Stadium. So I will: It's going to be very cold (forecast: 17 degrees). If one were to bet the game, I would bet the "under" (44 1/2) and lay the points (-9 1/2). A lot is being made of the fact that Peyton Manning is 0-3 in cold weather playoff games. Pshaw. All of the games were obviously on the road, two in New England. I will counter by saying that Peyton never played on a team with the #2 ranked defense in the league going into the game...
At any rate, some of you may have noticed the paper hit put on the precious metals once again today after the Comex opened. The catalyst was some ridiculous comments by the Philadelphia Fed's Charles Plosser. I responded in kind to his idiocy:
Please tell me, Mr. Plosser, where exactly is this GDP growth of 3% going to come from given that the trend in GDP going into 2013 is declining, 1% or less and the main driver of GDP over the last 12 years - consumption - is quickly eroding?You can read my commentary here: LINK
I discuss some trading ideas that we implemented yesterday and for which we used Plosser's mind-numbingly absurd statements to take advantage of the market's illogical response. This is just one of those days where understanding our Orwellian system makes it a little easier to make money if you know how to take advantage of it. Have a great weekend.