Now much longer can the media pound the tale of doom before they lose all credebility? This attempt to engineer hyperinflation is losing steam. They will need help to really get it going again. They can always count on the Americans. But, even that seems to be coming up short. These are very interesting times. I'm betting it take until Fall of next year to cause another major crash and they will need a disaster to spark it off. Even a Judge in the recent SEC case said the settlement was wholely unacceptable and did not satisfy the law. The collusion is starting to show cracks. To support this someone else is going to have to print like crazy. Someone like the EU but, I'm not sure the Germans are ready to get in the game considering the last time they tried to take over the EU we had WW2 and they lost. China isn't willing to participate and is even taking loses to avoid playing the game. Sure, they predict softer copper prices as they try to cool their own economy. Duh. They are even trying to get into small lending to reduce private interest rates but funny that, people are still more willing to borrow privately at high rates than go to a government bank. Obviously, CIBC is interested in that part of the loan shark business.
Companies balance sheets are beginning to buldge. Our Commerce department said this would be the year of takeovers and that seems to be holding up. Finance said recently that we are beginning to get the cash inflows as other countries start to tax FDI's.
The reality is there's only so much take over business out there and when that starts to run out then then dividends have to go up. Money pours in during these times. It's only when growth starts to occur that money shifts from dividends to growth stocks and that's expected to take 5 years. 5 years!? What will they be doing in the mean time? There's only so much you can do to keep up the appearance of being busy. We are begining to see some heavy spending on capital equipment and that will translate into jobs at the industrial level. In the mean time the cash economy is growing because it's detaching from the main stream. People are going to hard assets as they should and that ties up spending coin. That is troubling for the big companies. They like Black Friday but they are seeing the spending become much more selective and that they don't like. Remember cocooning? It's starting again. In part this is being driven by a sense of entitlement and in part by the drive towards hard assets. They evil dooers didn't wait long enough for people to forget the last big ripoff and they went too deep this time.
As a result of this I think we are going to see them change their strategy and try create a thinking bubble. People will welcome the rise and it will be sustained until they get enough people confident that the worst is over. That's when they will bring on the full attack. Watch out Iran! Here comes another illegal war. Watch oil prices soar and economies stagnate.
The good part for us is we will be comfortably sold at a reasonable price in Jan and we will have time to take some more profits before this come down on the world.
