Musings On The Markets - "A Penny For The Old Guy"

It appears as if the Asians tried to "game" the Comex by dumping gold overnite ahead of the jobs number and got their fingers burned. This is an epic reversal for the metals on a "jobs lost" Friday. This is incredibly bullish.

The Fed has made it clear that they are going to have to ramp up their printing press, the Treasury yield curve is starting to price in an acceleration in inflation - either dollar devaluation/money supply expansion or actual price inflation, or both - and the Obama Government loses credibility now on a daily basis. The stock market - contrary to the babbling ignorance expressed by those on CNBC/Bloomberg (and now NPR) - is not reflecting the expectations of robust economic growth, but rather the clear and present signal that the Fed has no choice left but to hyperinflate the money supply in order to monetize growing Treasury issuance and the accelerating collapse of commercial and residential credit markets. If we have any kind of surprises this year, it won't from an unexpectedly strong economy but from an unexpected move higher in gold.

On an anectdotal note: we were surveying the home listings in the Denver area online last night and were quite stunned by the large number of listings in zip codes most affected by bubble-pricing. Even more shocking was the number of homes for rent on Craigslist. Oh ya, there are now 37 million people in this country - over 10% of the population - now on food stamps.  Our economic system is drifting into an economic Heart of Darkness - "Mistah Kurtz He Dead."

This just in:  the Government household survey show 680,000 jobs were lost in December.  This report, which never gets any televised media exposure and won't reported in newspapers tomorrow, is considered to be infinitely more accurate than the HIV-cocktail headline-reported number.