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The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex

N.B.
* The content in my articles is time-sensitive. Each one shows the date and time (New York ET) that I publish them. By the time you read them, market conditions may be quite different than that which is described in my posts, and upon which my analyses are based at that time.
* My posts are also re-published by several other websites and I have no control as to when their editors do so, or for the accuracy in their editing and reproduction of my content.
* From time to time, I will add updated market information and charts to some of my articles, so it's worth checking back here occasionally for the latest analyses.

DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...

Dots

...If the dots don't connect, gather more dots until they do...or, just follow the $$$...

Spring

Spring

Events

UPCOMING (MAJOR) U.S. ECONOMIC EVENTS...
* Mon. May 28 ~ U.S. markets closed for Memorial Day Holiday
* Wed. May 30 @ 2:00 pm ET ~ Beige Book Report
* Fri. June 1 @ 8:30 am ET ~ Employment Data
* Tues. June 12 @ 8:30 am ET ~ MoM & YoY CPI & Core CPI Data
* Wed. June 13 @ 2:00 pm ET ~ FOMC Announcement + FOMC Forecasts + @ 2:30 pm ET ~ Fed Chair Press Conference
* Tues. July 3 ~ U.S. markets close early at 1:00 pm ET
* Wed. July 4 ~ U.S. markets closed for Independence Day Holiday
* Thurs. July 5 @ 2:00 pm ET ~ FOMC Meeting Minutes
* Wed. Aug. 1 @ 2:00 pm ET ~ FOMC Announcement
* Mon. Sept. 3 ~ U.S. markets closed for Labour Day Holiday
*** Click here for link to Economic Calendars for all upcoming events

IMPORTANT BLOG POST UPDATES...
* JCPOA - Will President Trump recertify the JCPOA on May 12?...stay tuned...May 8 the answer is "No"...US pariticipation in the deal
is scrapped...new sanctions coming for Iran and, possibly, for nations supporting Iran.

Wednesday, April 25, 2012

The Dirt Under the Carpet

With today's Fed announcement out of the way now, we see that no new Fed monetary easing programs are underway.

Instead, the U.S. is still left with this...their growing national debt. This is something that the Fed cannot solve...it's up to the politicians, and, still, I've heard nothing this year that leads me to believe that any part of this is being tackled. Instead, it seems to be the dirt that is lingering under the carpet, never to be dealt with until, perhaps, after the November election, or, perhaps, not at all.


With issues such as declining Durable Goods Orders and Core Durable Goods orders since 2001 and 2002, respectively, as shown on the graphs below (data released on Wednesday), declining consumer optimism, and housing numbers still at 2009 recessionary lows, I would have thought that politicians would have acted more responsibly to reduce the debt while finding measures to stimulate their economy.


Instead, it seems that the real purpose of the Fed's QE1, QE2, and Operation Twist programs was to provide liquidity to banks in an attempt to reverse the damage caused by their part in bringing forth the 2007/08 financial crisis. And, from what Ben Bernanke said today in his press conference, it would seem that the Fed is still wanting more liquidity to be carried by the banks...this doesn't signal greater lending policies to be forthcoming from the banks, rather, tighter policies.

This leads me to believe that the financial crisis was far greater than anyone let on and that it is still not resolved. So, what the Fed has been (and is) doing is not to provide money for public consumption, but to financial institutions to try to prevent their collapse pertaining to problems arising from domestic issues, as well as global issues (which have been escalating of late).

So, the politicians (Democrats and Republicans alike) are still on the hook to provide the relief to the average American which they promised in the last election, as well as to deal with their national debt problems.  Let's not forget that America's credit rating was cut in August of 2011 because of the outstanding debt, and it has not been re-instated.