Friday, February 14, 2014

So, This is Good-bye; Good Luck with Janet Yellen

After 1828 posts, spanning nine years (started in 2006), this may be the last post for Money Daily - at least in its current form. Perhaps at some point I will change the name to Finance Weekly or Rick's Occasional Posts on the Economy or something like that, but the effort involved in producing a relevant post every day (as opposed to the ridiculous ranting often seen here) seems to be not worth the effort anymore.

Since the economic collapse of 2008-09, the global financial system has been wildly distorted by the actions of central banks, primarily by the US Federal Reserve, via their Zero Interest Rate Policy (ZIRP) and Quantitative Easing (QE) mechanisms.

While Wall Street regulars laud praise upon former Chairman Ben Bernanke, and surely they will do the same with Janet Yellen, the Fed policies of the past six years have benefitted only banks and speculators, often those two disparate entities being one and the same. Surely, anybody who receives money at close to zero percent interest can make a buck, and it's even easier when you're in collusion with other bankers or speculators, as is the case with our current system.

Nothing other than the Fed matters when it comes to stocks, bonds, or even money in general. The Fed creates it out of thin air in copious amounts, and, even though they've recently cut back on their rampant printing - from $85 billion to a mere $65 billion per month - it's still a hugely distorting factor in all markets.

There is no stopping it, and any kind of qualitative analysis of financial markets must factor this element in as a major bulwark.

Thus, there is little to discuss on a day-to-day ongoing basis, because, in the end, nothing else matters or makes perfect sense, and, in economics, as in any "science," perfection is demanded, though all too often it is lacking, covered up by innuendo and a false sense of security supplied by the Fed and their lackeys in the financial media and Wall Street hack talkers, disguised as "analysts" for public consumption.

Since a more balanced, sustainable approach is preferred by your humble author, it's time to move on to other creative pursuits. I may, from time to time, pen a financial piece and post it here, but the numbing daily schedule will be no more.

It's been fun, for the most part, and I wish anyone and everyone who has gained from this the best in their investment and financial decisions. For my money, I prefer to keep stacking silver (which made an enormous move today), learn more about and engage in sustainable farming and leave the financial gimmickry to those better suited (pun intended) to that kind of soulless lying.

In closing, since we are engaged in a world that often makes little sense, a few lines from George Orwell's 1984:


Via con Dios, mis amigos!


DOW 16,154.39, +126.80 (+0.79%)
NASDAQ 4,244.03, +3.35 (+0.08%)
S&P 1,838.63, +8.80 (+0.48%)
10-Yr Note 100.06, +0.02 (+0.02%) Yield: 2.74%
NASDAQ Volume 1.73 Bil
NYSE Volume 3.10 Bil
Combined NYSE & NASDAQ Advance - Decline: 3417-2261
Combined NYSE & NASDAQ New highs - New lows: 278-24
WTI crude oil: 100.30, -0.05
Gold: 1,318.60, +18.50
Silver: 21.42, +1.026
Corn: 445.25, +4.75

No comments: