Most of you know that I look at unemployment critically, simply because a recover without it, is not a recovery at all. There are no green shoots to be had if unemployment keeps rising, and I see no end in sight. The government's numbers are horribly skewed, and even with the skewing, they get revised months later to larger numbers. Unemployment is much closer to 20% now, and when you see Yahoo reporting articles such as The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed, its a telling sign. The image below is provided as a courtesy of Shadowstats.com
Thanksgiving weekend turned out to be a high action weekend, I mean what are the chances of this being well timed when every trader is away for markets to be manipulated? Yes, I said it... this is corruption at its worst!Dubai World Seeks to Delay Debt Payments as Default Risk Soars.
Look for Ukraine and/or Greece to follow soon. This was a test to gauge the market reaction. The coverage in the US was pathetic, but I think Max Keiser does a good job of touching on the main issues that are involved here.
The Dollar Carry Trade
Written by Prophet
Thursday, 19 November 2009
Do you know what the dollar carry trade is? You should. It's important, simply because it affects where the dollar and a lot of things go from here. In short, keeping interest rates low and printing money (which the FED does), can throw lots of liquidity into the economy. This is all controlled by the FED, what isn't controlled by the FED though is where this money goes. Side effects include, yet are not limited to things such as inflation, creation of asset bubbles, and ultimately the devaluation of the dollar.
It is critical for everyone to understand fully what the implications of any currency carry trade would be, and Jim Willie does a fine job explaining it in his article, New Deadly Dollar Carry Trade. A must read.
