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Last Update:
11/11/2021 11:18 PM
SCHEDULE: 1st Pass: 5:30AM EST, 2nd Pass: 8:00 AM, 3rd Pass 10:30
AM. Last Pass 5:30 PM
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Doubts Grow Over ‘Peripheral’ Euro-Zone Nations |
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Euro slips below $1.38 as debt worries persist |
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IMF warns austerity measures may have to be reconsidered |
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Greek FinMin: Greece Not Ireland, Banks Under Control |
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Portugal Sells Bonds, Relief Seen Despite Yield Rise |
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Ireland on Brink as `Beggar' for Aid After Losses by
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Research Ireland: Debt crisis part II |
Danske |
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Ireland's Fate Is Tied To Doomed Banks |
WSJ |
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30-Year Treasury Auction Disaster- Yield Now 4.32% |
BI |
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Wall Street Collects $4 Billion From Taxpayers as Swaps
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Junk-Bond Sellers Find Risk Too High |
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Mutual Funds Seek to Avoid Risk Supervision by Fed |
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U.S. Debt Proposal Would Cut Social Security, Taxes,
Medicare |
Bloomberg |
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This Is How The Mainstream Media Got Today's Jobs Report
Wrong |
BI |
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Hong Kong $230,000 Bid Overtakes London-New York Wine
Auctions |
Bloomberg |
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China's October trade surplus soars to $27 billion |
AP |
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China raises bank reserves to calm credit growth |
Reuters |
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China aims to draw excess cash by raising yield on bills |
Shanghai Daily |
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China's property price growth slows to 8.6% in Oct |
Xinhua |
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Convertible Bonds Lead Debt Gains Amid Yuan Bets: China
Credit |
Bloomberg |
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Shareholders rush to cash in |
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’More than 26 times covered...’ |
FAsia |
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Hong Kong Home Sales Worth More Than $2.6 Million Jump 86%,
Defying Curbs |
Bloomberg |
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Hong Kong Asset Bubble Risk Rises With Fed Easing Liquidity
Rush, RCM Says |
Bloomberg |
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Deficit Panel's Leaders Push Cuts |
WSJ |
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The Fed's QE2 Misadventure Will Cost U.S. Households $4.6
Trillion |
Smith |
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REMAINING |
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Fish stocks dwindle as trawlers empty Asia's seas |
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CENTRAL BANKING & MONETARY POLICY |
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Latest QE threatens the world |
Duncan |
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In a QE2 world, only a handful of investments hold appeal |
Rosenberg |
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QE in the mid 1930s Appeared to Have Been Successful |
Kasriel |
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Bernanke tells Jacksonville University students QE is not
inflationary |
Pollaro |
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The end of the world we’ve known since WWII |
Fabius Maximus |
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Stephen Roach: QE represents “what got us into the mess” |
Credit
Writedowns |
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Is the Fed’s Definition of Price Stability Evolving? |
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Faber: The Developing World Should Be Thanking Bernanke... |
BI |
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Bernanke Panned by Palin, Cheered by Faux Fed |
Baum |
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The Fed is right to turn on the tap |
FT Wolf |
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Is the Fed's Debt-Buying Unconstitutional? |
Fox |
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Fed Easing Seen Ineffective by 75% in Global Poll Favoring
ECB |
Bloomberg |
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GENERAL INTEREST |
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An unfortunate needle points to war |
Harrison |
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Kiss Your Assets Goodbye If Certainty Reigns |
Ritholtz |
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MARKET WARNINGS |
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10 Market Bubbles That Could Soon Burst |
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G20 MEETING |
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Federal Reserve action under global attack ahead of G-20 |
CNN |
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G-20 Nations Wrangle Over Strengthening Vow on Currencies |
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G-20 Unity Born in Crisis Fractures as Leaders Pursue Own
Ends |
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Turkish PM to air concern over Fed's QE2 at G20 summit |
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CURRENCY WARS |
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Chinese firm downgrades US credit rating |
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China, U.S. in `grand bargain' on yuan appreciation:
Goldman's O'Neill |
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'Currency war can create prisoner’s dilemma' |
Korea Times |
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It's not just the dollar's fault |
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Q3
EARNINGS |
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MARKET
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World
Bank chief says G20 should heed gold price |
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If the World Goes Gold... |
WSJ |
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Carney rejects return to gold |
FT |
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Roubini: Here's Why a Gold Standard Won't Work |
CNBC |
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Gold Standard: How to Prep for It |
TheStreet |
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Raise in CME Silver Margins Prompts After-Hours Sell-Off |
Kitco |
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$60 Silver? |
Casey |
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VIDEO
TO WATCH |
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Complete Legend to the Right, Top Items below.
Articles with
highlights, graphics and any pertinent analysis found below.
|
LATEST RESEARCH PUBLICATIONS |
RSS
 |
COMMENTARY for all articles by
Gordon T Long
CURRENCY WARS: Debase, Default, Deny!
In
September 2008 the US came to a fork in the road. The Public Policy
decision to not seize the banks, to not place them in bankruptcy court
with the government acting as the Debtor-in-Possession (DIP), to not split
them up by selling off the assets to successful and solvent entities, set
the world on the path to global currency wars.
By lowering interest rates and effectively guaranteeing a weak dollar, the
US ignited an almost riskless global US$ Carry Trade and triggered an
uncontrolled Currency War with the mercantilist, export driven Asian
economies. We are now debasing the US dollar with reckless spending and
money printing with the policies of Quantitative Easing (QE) I and the
expectations of QE II. Both are nothing more than effectively defaulting
on our obligations to sound money policy and a “strong US$”. Meanwhile
with a straight face we deny that this is our intention.
Though prior to the 2008 financial crisis our largest banks had become
casino like speculators with public money lacking in fiduciary
responsibility, our elected officials bailed them out. Our leadership
placed America and the world unknowingly (knowingly?) on a preordained
destructive path because it was politically expedient and the easiest way
out of a difficult predicament. By kicking the can down the road our
political leadership, like the banks, avoided their fiduciary
responsibility. Similar to a parent wanting to be liked and a friend to
their children they avoided the difficult discipline that is required at
certain critical moments in life. The discipline to make America swallow a
needed pill. The discipline to ask Americans to accept a period of intense
adjustment. A period that by now would be starting to show signs of
success versus the abyss we now find ourselves staring into. A future
that is now massively worse and with potentially fatal pain still to come.
READ MORE |
|
CURRENCY WARS: Misguided Economic Policy
The
critical issues in America stem from minimally a blatantly ineffective
public policy, but overridingly a failed and destructive Economic
Policy. These policy errors are directly responsible for the opening
salvos of the Currency War clouds now looming overhead.
Don’t be fooled for a minute. The issue of Yuan devaluation is a political
distraction from the real issue – a failure
of US policy leadership. In my
opinion the US Fiscal and Monetary policies are misguided. They are wrong!
I wrote a 66 page thesis paper entitled “Extend
& Pretend” in the fall of 2009 detailing why the proposed Keynesian
policy direction was flawed and why it would fail. I additionally authored
a
full series of articles from January through August in a broadly
published series entitled “Extend & Pretend” detailing the predicted
failures as they unfolded. Don’t let anyone tell you that what has
happened was not fully predictable!
Now after the charade of Extend & Pretend has run out of momentum and more
money printing is again required through Quantitative Easing (we predicted
QE II was inevitable in
March), the responsible US politicos have cleverly ignited the markets
with QE II money printing euphoria in the run-up to the mid-term
elections. Craftily they are taking political camouflage behind an
“undervalued Yuan” as the culprit for US problems. Remember, patriotism is
the last bastion of scoundres
READ MORE
|
READER ROADMAP
- 2010 TIPPING POINTS aid to
positioning COMMENTARY
|
|
1
1-SOVEREIGN DEBT |
2-EU BANKING CRISIS |
3-BOND BUBBLE |
4-STATE &
LOCAL GOVERNMENT |
5-CENTRAL & EASTERN EUROPE |
6-BANKING CRISIS II |
7-RISK REVERSAL |
|
8-COMMERCIAL REAL ESTATE |
9-RESIDENTIAL REAL ESTATE -
PHASE II |
10-EXPIRATION FINANCIAL
CRISIS PROGRAM |
11-PENSION CRISIS |
12-CHRONIC
UNEMPLOYMENT |
13-GOVERNMENT BACKSTOP
INSUR. |
14-CORPORATE
BANKRUPTCY |
|
TODAY'S TIPPING POINTS UPDATE |
RED ALERT |
AMBER ALERT |
ACTIVITY |
MONITOR |
|

Click to Enlarge

|
11-10-10
GEO-POLITICAL TENSIONS - ISRAEL / KOREA / IRAN
IRAN
ISREAL
KOREA
1-
SOVEREIGN DEBT & CREDIT CRISIS |
VETERAN'S DAY - REMEMBERANCE DAY
NO GOVERNMENT RELEASES
|
30-Year Treasury Auction Disaster- Yield Now 4.32%
BI

4- STATE
& LOCAL GOVERNMENT |
5-
CENTRAL & EASTERN EUROPE |
Wall Street Collects $4 Billion From Taxpayers as Swaps Backfire BL
Junk-Bond Sellers Find Risk Too High WSJ
As they exit, mom-and-pop investors are flooding in, along
with mutual funds that are usually dedicated to other
investments... |
Mutual Funds Seek to Avoid Risk Supervision by Fed
BL
8-
COMMERCIAL REAL ESTATE |
9-RESIDENTIAL REAL ESTATE - PHASE II |
10- EXPIRATION FINANCIAL CRISIS PROGRAM
|
11- PENSION & ENTITLEMENTS CRISIS
|
U.S. Debt Proposal Would Cut Social Security, Taxes, Medicare
BL
“This country’s out of money and we better start thinking”
Without “tough choices we’re on the most predictable path toward
an economic crisis that I can imagine” |
This Is How The Mainstream Media Got Today's Jobs Report Wrong
BI
13- GOVERNMENT BACKSTOP INSURANCE |
14- CORPORATE BANKRUPTCIES |
Hong Kong $230,000 Bid Overtakes London-New York Wine Auctions BL
That’s not investment. That is just
uncontrolled spending.” |
China's October trade surplus soars to $27 billion AP
China raises bank reserves to calm credit growth Reuters
China aims to draw excess cash by raising yield on bills Shanghai
Daily
China's property price growth slows to 8.6% in Oct Xinhua
Convertible Bonds Lead Debt Gains Amid Yuan Bets: China Credit BL
Shareholders rush to cash in Standard
’More than 26 times covered...’ FAsia
The move may have been triggered by uncertainties lying ahead...
Hong Kong Home Sales Worth More Than $2.6 Million Jump 86%, Defying Curbs
BL
Hong Kong Asset Bubble Risk Rises With Fed Easing Liquidity Rush, RCM Says
BL
19- PUBLIC POLICY MISCUES |
Deficit Panel's Leaders Push Cuts WSJ
Leaders of a White House commission laid out a sweeping plan to
cut the federal budget deficit by hundreds of billions a year by
targeting sacrosanct areas of U.S. tax and spending policy, such
as Social Security benefits, middle-class tax breaks and defense
spending.
|
The Fed's QE2 Misadventure Will Cost U.S. Households $4.6 Trillion
Smith
Total loss inflicted on
households by QE2 to date: $4.6 trillion. The Fed's QE2
has been an unmitigated disaster for 90% of American households,
as it has destroyed the value of their purchasing power in a
Devil's Pact to goose stocks, which only benefits the top 10% of
households--and most of those paper gains are reserved for the top
1%
Those are the numbers; exactly what conclusion
can be drawn from them except the Fed is a horrendously misguided,
Elite-dominated destructive force which must be reined in
politically?
|
OTHER TIPPING POINT CATEGORIES NOT LISTED ABOVE
24-RETAIL SALES
26-GLOBAL OUTPUT GAP
31-FOOD PRICE PRESSURES
Fish stocks dwindle as trawlers empty Asia's seas AFP
Demand for top-quality seafood, from Southeast Asian nations
themselves and from Hong Kong and China, is another major factor
behind the emptying of the seas.
According to World Fish data, there were 10 times more fish in
the Gulf of Thailand in 1965 than 30 years later.
In Malaysia the decline was between 80 and 90 percent while in
the Philippines it is estimated that there was a 46-78 percent
dropoff in fish stocks.
There is little data from other countries without the resources
to carry out the studies, but World Fish believes the rate of
decline in those three countries is reflected across Southeast
Asia.
|
32-US STOCK
MARKET VALUATIONS
GENERAL INTEREST
An unfortunate needle points to war Harrison
Dr. HB
Kiss Your Assets Goodbye If Certainty Reigns Ritholtz
FLASH CRASH - HFT - DARK POOLS
MARKET WARNINGS
10 Market Bubbles That Could Soon Burst Daily Finance
G20 MEETING
Federal Reserve action under global attack ahead of G-20 CNN
G-20 Nations Wrangle Over Strengthening Vow on Currencies BL
Group of 20 nations failed to resolve differences over currency
policies blamed for distorting global trade and investment, hours
before their leaders gather, a South Korean official said.
|
G-20 Unity Born in Crisis Fractures as Leaders Pursue Own Ends BL
Turkish PM to air concern over Fed's QE2 at G20 summit Reuters
CURRENCY WARS
Chinese firm downgrades US credit rating Xinhua
"In essence, the US government's move to devalue the dollar
indicates its solvency is on the brink of collapse” |
China, U.S. in `grand bargain' on yuan appreciation: Goldman's O'Neill
BL
'Currency war can create prisoner’s dilemma' Korea Times
It's not just the dollar's fault Barr
"The US currency is roughly back to where it was before the
global financial crisis (when many of the countries now
complaining about a weak dollar were actually doing pretty well),"
writes Julian Jessop of Capital Economics. "If this is a 'currency
war,' it still seems pretty phony."
|
Greenback has fallen 12% against the
yen and a staggering 18% against the
euro since early June.
The Fed's
trade-weighted broad exchange index, which tracks how the
dollar trades against two dozen or so global currencies, has
fallen just 7% since the euro and yen took off in late spring.
the reason the euro and the yen have been under such pressure
is because they are bearing the brunt both of Bernanke's
reflation play and of China's refusal to play by the same
rules as most everyone else.
|
China's decision to continue with this policy, at a time when
others in the emerging world are
screaming about the dollar's plunge against their floating
currencies, isn't just putting a floor under the broad dollar
index and sending the yen and euro screaming higher. It's also
holding back a deeply troubled U.S. economy,
writes Andrew Balls of Pimco.
"The U.S. faces structural as well as cyclical problems and the
fact that the U.S. dollar has not been allowed to weaken versus
important Asian currencies is one factor frustrating structural
adjustment in the U.S.," Balls wrote this week.
It is certainly not the only one. As Balls' colleagues at Pimco
have
pointed out repeatedly, U.S. politicians must confront the
country's
glaring deficiencies in areas such as infrastucture and energy
policy before we can expect enough good jobs to start popping up
here. Someone must also get a grip on the deteriorating U.S.
fiscal picture, sooner rather than later.
But policymakers here aren't the only ones who bear
responsibility for the muddle that is the global trade picture
right now.
"At some point, emerging market countries may decide that the
potential benefits of large scale currency interventions are
outweighed by the costs, and therefore allow their currencies to
appreciate rather than trying to frustrate the process of global
rebalancing," Balls writes. "If not, creeping protectionism
remains a serious threat."
Hopefully, this is not a something's got to give sort of
situation. But even if it is, a look back at the last crisis
suggests that it may not be the dollar that will end up taking the
brunt of the bad news, however richly deserved it may seem.
|
Q3 EARNINGS
MARKET &
GOLD MANIPULATION
World
Bank chief says G20 should heed gold price
FT
Zoellick said critics had misunderstood his proposal as a call for a
return to the gold standard... |
If the World Goes Gold... WSJ
Carney rejects return to gold FT
Roubini:
Here's Why a Gold Standard Won't Work CNBC
Gold
Standard: How to Prep for It TheStreet
Raise in CME Silver Margins Prompts After-Hours Sell-Off Kitco
$60 Silver? Casey
“The margins were only raised for silver – but under the SPAN
margining system that the CME uses, the possibility of other
margin increases propped up...” |
AUDIO / VIDEO
QUOTE OF THE WEEK
"It could unfold very, very quickly. Because deflation is a
swing of poverty feedback, it can take awhile to build up. If you
try to explain to people what's coming, because it doesn't happen
instantly, they tend to go back to sleep. The thing they need to
understand, however, is that when it does hit a tipping point, a
kind of critical mass, then it can unfold exceptionally quickly.
Then it's very much like having the rug pulled out from under your
feet. So I tell people all the time, prepare now because it's
better to be two years too early than five minutes too late. You
can't play with this sort of thing. In September, 2008, we came
within a few hours of the banking system seizing up, and that
could easily happen again. People wouldn't get a lot of notice.
For anyone who's not in the meeting room-it will be too late by
the time they find out. My worry is that if there are an enormous
number of people who just had the rug pulled out from under their
feet, they're going to run around like headless chickens, and the
human over-reaction to events will be really responsible for a
large percentage of the impact. “
Automatic Earth
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PROMOTION DETAILS |
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Gordon T Long is not a registered advisor and
does not give investment advice. His comments are an expression of opinion
only and should not be construed in any manner whatsoever as
recommendations to buy or sell a stock, option, future, bond, commodity or
any other financial instrument at any time. While he believes his
statements to be true, they always depend on the reliability of his own
credible sources. Of course, he recommends that you consult with a
qualified investment advisor, one licensed by appropriate regulatory
agencies in your legal jurisdiction, before making any investment
decisions, and barring that, we encourage you confirm the facts on your
own before making important investment commitments.ont>
© Copyright 2010 Gordon T Long. The information
herein was obtained from sources which Mr. Long believes reliable, but he
does not guarantee its accuracy. None of the information, advertisements,
website links, or any opinions expressed constitutes a solicitation of the
purchase or sale of any securities or commodities. Please note that Mr.
Long may already have invested or may from time to time invest in
securities that are recommended or otherwise covered on this website. Mr.
Long does not intend to disclose the extent of any current holdings or
future transactions with respect to any particular security. You should
consider this possibility before investing in any security based upon
statements and information contained in any report, post, comment or
recommendation you receive from him.
|
TIPPING POINTS |
1-SOVEREIGN DEBT &
CREDIT CRISIS |
2-EU BANKING CRISIS |
3-BOND BUBBLE |
4-STATE & LOCAL
GOVERNMENT |
5-CENTRAL & EASTERN EUROPE |
6-BANKING CRISIS II |
7-RISK REVERSAL |
|
8-COMMERCIAL REAL ESTATE |
9-RESIDENTIAL REAL ESTATE -
PHASE II |
10-EXPIRATION FINANCIAL
CRISIS PROGRAM |
11-PENSION CRISIS |
12-CHRONIC
UNEMPLOYMENT |
13-GOVERNMENT BACKSTOP
INSUR. |
14-CORPORATE
BANKRUPTCY |
|
15-CREDIT CONTRACTION II |
16-US FISCAL IMBALANCES |
17-CHINA BUBBLE |
18-INTEREST PAYMENTS |
|
19-US PUBLIC POLICY MISCUES |
20-JAPAN DEBT DEFLATION SPIRAL |
21-US RESERVE CURRENCY. |
22-SHRINKING REVENUE GROWTH RATE |
23-FINANCE & INSURANCE WRITE-DOWNS |
24-RETAIL SALES |
25-US DOLLAR WEAKNESS |
26-GLOBAL OUTPUT GAP |
27-CONFIDENCE - SOCIAL UNREST |
28-ENTITLEMENT CRISIS |
29-IRAN NUCLEAR THREAT |
30-OIL PRICE PRESSURES |
31-FOOD PRICE PRESSURES |
32-US STOCK MARKET VALUATIONS |
33-PANDEMIC |
34-S$ RESERVE CURRENCY |
35-TERRORIST EVENT |
36-NATURAL DISASTER |
READING
THE RIGHT BOOKS? NO TIME?
WE HAVE IT ANALYZED
& INCLUDED IN OUR LATEST RESEARCH PAPERS!
ACCEPTING
PRE-ORDERS

Book Review- Five Thumbs Up for Steve Greenhut's
Plunder! Mish
|