Ahhh....PLUNGE PROTECTION! Ya gotta love it. The last few days have
been a little surreal in case you haven't noticed.
AS OIL SOARED, SO DID THE DOW! NOW THAT'S SOMETHING YOU DON'T SEE
EVERYDAY.
My hunch is that the secret Fed Plunge Protection Team was at work
here. Oh sure, you hear the yada yada that the market was "oversold"
etc, etc, and there is a little bit of truth to that.
But still, Oil is starting to dictate the terms for the market now,
unlike at any time since the 1970's.
ACTUALLY I BLAME THE TRADE DEFICIT FOR THE RECENT UNPLEASANTNESS WITH
OIL. You do remember the trade deficit? That thing we always ignore?
WITH THE US TRADE DEFICIT NOW "UNOFFICIALLY" TOTALLY OUT OF CONTROL,
THE DOLLAR MUST "IPSO FACTO" BECOME WEAKER. Remember even the G-Man
has admitted this much, right?
BUT A WEAKER DOLLAR ALSO MEANS, IPSO FACTO, MORE EXPENSIVE OIL,
SINCE, ALAS, OIL IS "PRICED IN DOLLARS," REMEMBER? Do the math.
So, while the US media has done wonders to distract and delude us
from the trade deficit;
The market has remembered. And, apparently remembered only too well.
ERGO;
THE "MIRACULOUS" RISE IN OIL RECENTLY WAS CAUSED BY THE US TRADE
DEFICIT! Any questions? I didn't think so.......
SO, WHEN THE TV TOUTS GET COMPLICATED, THE MARKETS OFTEN GET SIMPLE.
REAL SIMPLE.
This is just textbook stuff here, nothing fancy.
Of course, the situation in Iraq is not helping. Apparently, Allawi
is Dubya's Plan "B" through "Z" now! Allawi is going to be
The "American Saddam," or the US Troops will be heading for the
borders soon! At double time! Maybe Dubya and Rummy should
have "boned up" on history of Sunnis and Shia, BEFORE THEY INVADED?
And;
NATURALLY, THE WHOLE WORLD FEARS THE RE-ELECTION OF DUBYA! WHAT A
MASSIVE "GLOBAL GROANER" THAT ONE IS GOING TO BE!
Indeed, I would say without fear of contradiction that the re-
election of Bush will be the final nail in the Dollar's Coffin!
And, yeah, $50 oil will seem like a pleasant dream then. Try $80 Oil
for size. And, them New Chinese Cadillacs ain't helpin the situation
much either!
GOLLY, IF THINGS KEEP SPINNING OUT OF CONTROL, MAYBE EVEN BUBBA WILL
WISE UP, AND "VOTE FOR CHANGE" IN NOVEMBER!
YA THINK?
Nah! Forget about it, Bubba ain't that smart.
Anyway, there are some conspiracy theories for the recent rally.
Perhaps, the markets are trying to give Bush a nice little "pre-
convention rally?"
And, since NO ONE is going to voluntarily be on Wall Street during
the convention; perhaps a little "Dow Insurance" is in order?
And, of course, the volume has been THIN! Really Thin. Hence,
rallies are easy in these Dog Daze of August.
And Google? Don't even ask......, plenty of time to buy that one,
talk to me maybe in a year or two............
