My Take:
I hope you folks filled up your gas tanks over the holiday weekend. Gas is going to go up sharply if the Middle East continues going "Mike Tyson" crazy.
IMO, $4 gas is the tipping point for the consumer, and we are rapidly closing in on this number as I type. Gas sat at around $3.40 when I hit the pump today.
The markets are going to be interesting tomorrow. Stock futures are down sharply. On the flip side, food futures, gold, and silver are all soaring as the world sinks into total chaos.
What's scary is it's not just the Middle East
We have our own version of "Egypt" over here in the beautiful state of Wisconsin. Who woulda guessed that the crap would start hitting the fan there first?
It's comical watching this whole charade. The unions look like a bunch of clueless little spoiled brats. Weaning the unions off of the government "teet" is going to be a very painful process.
Sadly these people don't understand that it's got to happen because the money isn't their to pay for their 100k per year pensions. The state unions are bunch of morons, and I am going to enjoy watching this legislation get shoved down their throats.
A note to the unions: Wake the hell up and realize that we cannot fund the future promises that we made to our state workers. These promises were made assuming that the market would go up 10% a year forever which is impossible!
It's time for you people SUCK IT UP and DEAL like the rest of us private workers who have been forced to deal with massive layoffs and 20% unemployment.
Grrr!!!.....This gets me so angry.....I need a breather!
(Pause)
OK...Feeling better now...
Meanwhile, down in DC, the government faces a complete shutdown in less than two weeks as the Republicans and the Democrats face off against one another over spending. Watching this face off reminds me of watching the movie "Dumb and Dumber".
Neither side has a clue. Both sides remain blinded by greed as they continue to try and protect the hands that are lining their pockets instead of focusing on the real issues. I can't even stomach watching it anymore. Wake me up when they are ready to raise the social security age to 70.
The Bottom Line
Things are now happening at lightning speed folks. Fasten your seat belts and enjoy the ride. Watching this credit bubble unwind is going to be a sight to behold.
Keep a close eye on the Middle East. It's rapidly becoming a game changer. It's strange, looking back, I always thought it would be the bond market that would stop the Fed's "easy money" spigot. Now I am not so sure.
If the global inflation thats been created by our easy money policies continues to heighten the risk of global political instability then you might see this stop the Fed's "helicopter" policy dead in its tracks.
It will be interesting to see how the trading robots handle tomorrow's trade. The geeks from the Ivies that program these robots can't prepare them for global chaos.
Please be careful with your investments. We are entering into a period of extreme instability thanks to the "unintended consequences" of money printing.
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