Thank you.

I read the whole Fisher speech after you posted it last night and found his conclusion to be totally absurd, i.e. you voters must make the changes...
yes, we can write, call and fax but we are not the members in the Fed or Congress RIGHT NOW.

and as you say KD the country needs the WS hide-the-losses and fed backing of such garbage to stop right now.

Fisher should give that speech to Congress and Economic Committees and next week. even the President should hear it and force Bernacke to reverse course pronto.

Start flooding Congress and the White House with this ticker and/or his speech text.

"the Emperor's new clothes " springs to mind...Bernanke

"The Emperor realized that the people were right but could not admit to that. He though it better to continue the procession under the illusion that anyone who couldn't see his clothes was either stupid or incompetent."

Gen, Thomas Jefferson would be pleased!

Ticker faxed to my Congressman with a notice that I have formed a Federal Political Action Committee to defeat any Federal Candidate who doesn't advocate getting our spending issues under control.

Mr. Fisher's fax number is 214-922-5025

Gen, minor typo on the last line.

You said: "We must, as Americans, stop this nonsnese before it consumes our nation."

Fixed.

now we just need to get butthole ben to resign too

Quote:

this will result in an insane price inflation problem in Chinese imports coming directly back at us. We already have a nutty problem with oil that was caused by The Fed's policies over the last nine months - add to this Chinese import prices and things are going to get very interesting for The United States. We could easily see 30% price increases on goods coming in from China - across the board.

KD...

i was speaking with my daughter over the weekend and during our discussion she was telling me about her latest deal with the chinese manufacturers she deals with for her company (she controls about $300M in sales) and the bottom line was that an item she was able to negotiate a $1 price for last year, will now cost $1.80....there's nothing the company can do except deal with the margin destruction they have on their products by raising prices or eating the increase....you are correct , chinese inflation will be coming to a store near you,

Yep - and the mass-revaluation of the Yuan hasn't happened yet.

I fully expect import prices to double, but since on most retail there is a 3:1 markup from manufacturer to retail, the impact at the store is likely to be somewhere around 30%, assuming the entire increase is passed on and not swallowed.

Of course if its swallowed in whole or part then it hits the "E" in P/E ratios.

Take your pick - either way we're ****ed.

DuPont just raised their prices by 20% across the board, so the big increases are coming domestically as well.

Great Ticker, wish I was citizen to fax away.

minor typo on 3rd bullet
Refused to rei(g)n in the BANKS, over which The Fed has control

specifically, my daughter told the CEO of the company that the profit margin was dropping from 28% to 18%, so they're still making money, as you point out the revaluation of the yuan hasn't taken place....this margin compression is reflecting the currant dollar/yuan ratio

LOL, listening to Glenn Beck @ work - am more and more convinced he does read yer tickers, Gen -

Fidgit - I send a copy each day to Glenn. I've never heard him mention them, nor does what he says always agree with the ticker, but his general trend is in line with what Genesis writes.

Tesla, yep, me 2 - Glenn's closing diatribe on the Fed today was amazing.

My business imports raw materials from China. My prices from 2007 to 2008 Doubled !

I will be placing orders again soon, will let you know, but I am anticipating

prices doubling again. I havn't raised my prices in 4 years, but I am now

getting squeezed from every angle...Raw materials, shipping cost, packaging,

you name it. The only thing I have power over is wages, but that is going to

change soon.

This is worth digging. http://digg.com/business_finance/Market_....

I'm still in the middle, but I remember - it may have been a decade ago - that Doug Noland penned in Credit Bubble Bulletin that "Liquidity seeks Inflation". Though in this context, he means rising prices - appreciation.

Note it wasn't new money or inflation seeks appreciation. It was LIQUIDITY.

So the liquidity of the late '90s went into tech.
That of the early 2000's went into housing.
That now goes into Oil and commodities.

Each blob of liquidity was to "fix" the previous problem, starting with LTCM. Note it was fannie/freddie who opened and poisoned their balance sheets in nearly exactly the way the Federal Reserve is doing today. They may have been bad before 1998, but were responsibly bad. But they did add liquidity.

It never goes where it is intended but becomes a loan reserve for speculation somewhere. Usually not where it is desired causing a bubble.

And yes, oil and gold were trading too low, but you can have bubble style appreciation in an asset appreciating for fundamental reasons. The Supply/Demand imbalances and fundamentals weren't causing a 20%+ rise either in Oil now, or in pets.com back then. Adding liquidity to an area where there is anticipation of a price rise will cause a price rise - unrelated to the original reasons be they correct or not. And that will eventually result in a collapse or crash.

When something is going up, and a huge bucket of capital is made available, it will flow toward it much as water will always flow downhill.

Sometimes people say Economics is a soft science, where empirical evidence is hard to come by. It is not entirely that way, only that we don't want to believe the results of the experiments so repeat them hoping to get the result we want until the lab blows up.

I haven't looked back toward the aftermath of the 1987 crash, or 1989 drop, or early 1990s recession, but I expect the same meddling writ small caused the same effect writ small.

I can only think about the current situation for a moment before recoiling in horror.

Oh, and congress? Karl Rove apparently had the ex-governor of Alabama imprisoned, and congress has subpoenaed Rove to ask him about it, and he is thumbing his nose at congress - who is merely investigating. Did Scooter do any jail time? Before bringing complex financial arrangements to seek justice, maybe they can start with something easy, simple and obvious. But the GOP tried with Clinton, but couldn't convict. What is a little perjury between friends?

No, congress should be holding hearings as often as the supreme court hears cases if not more often and doing something about it. Other than throwing the current set out, I know of no way to make them pay attention.

Though I agree completely, I do not understand how anything we few say or do will accomplish anything when......most people, including congress types, simply look at the TV and hear/see that Oil is down about 10% from its recent highs, the Dollar is going UP, the YEN is going DOWN and that nothing major is really going 'wrong' according to all the government numbers and "proof" is in the stock market which is more up than down and shows little fear. Are we just talking to ourselves? (sorry if this is in the wrong forum)

Being a sheep is your right as a Free American.

You pollute this area of the board in particular in trying to get OTHER people to be sheep, you will find you have "Access problems."