We are being treated like idiots. So the GDP falls in the U.S. and the Fed essentially says that it is a short-term deviation likely caused by weather disruptions and transitory factors. And it also more or less says the American consumer is showing signs of waking up. What it did not say was that the Manufacturing PMI Indexes from both the Empire State and Philly reports were bad two weeks ago and that the unemployment environment while showing a stabilized official jobless rate does not factor in people who are underemployed or have simply given up looking for full-time work.
The Fed also continues to pin its hopes on its printing press as it ‘fearlessly’ tries to kill its own currency, the USD, and pray that it does not cause hyper-inflation down the road. At what point will the Europeans plead that the EUR is too expensive, oh wait, that has started to happen.
The Fed and other Central Banks around the globe continue to treat the masses like they are fools showing their distaste for the ‘peasants’ they supposedly serve. The ‘confidence game’ is being played like a bad violin. GDP numbers have not only been lackluster from the States, but Europe continues to turn in significantly poor results among the countries in financial trouble. And lets not forget about the U.K. and its island of inhabitants who are less than thrilled with the current amount of economic stagnation.
So we must ask ourselves is everyone happy with what they have gotten? Does everyone have enough smart phones, ovens, computers, washing machines, and cars? Because the only way the entire economic mess is going to be solved is if everyone apparently stands in line at a store and starts buying more than they earn and believes their jobs will be safe for the next 12 months or so in order to cover the payments they will make on their credit cards.
And while we are expressing our frustration, allow us to digress and say that while Blackberry showed off their new phones yesterday, those of us waiting to purchase their new apparatus were likely taken aback that it will take another couple of months to actually get one in our hands. While we were being patient like a saint and saying that in the end we will be rewarded, it has to be said that waiting another couple of months is not exactly what we had in mind. Other smart phone companies will prove that this is no longer a sought after hi-technology, but a commodity known to even 3 year olds that is expected to be in the hand of every living soul on the planet. In other words waiting for a ‘new’ smart phone to arrive in the store is a bit like waiting for someone to make you lunch at a restaurant when you have no time and another restaurant (and just as good) is down the block and able to serve you a meal in a minute flat.
Data today includes the Canadian GDP figures, and the weekly Unemployment Claims from the States. Also Crude Oil Inventories will be released and this may or may not be interesting considering that WTI appears to be aiming for the 100.oo USD mark. Tomorrow the Non-Farm Employment Change numbers come from the States and PMI Manufacturing data will be published from many places.
We apologize for our tone today, but what we have are politicians and their appointed officials who represent the people continuing to claim they have their hands around the problem when they – the politicians and their officials – are largely the problem and refuse to believe that ordinary citizens can understand the mundane math of business.