Tuesday, March 22, 2011

Morning Update/ Market Thread 3/22 - Doesn’t Matter Edition…

Good Morning,

The Nikkei Index jumped 4.36% last night, of course the mainstream says that the market is signaling “All’s clear” in the world and that recent natural and man-made disasters, wars, revolution and commodity price induced famine are now fully priced into the markets, lol. Of course they fail to mention concerted G7 intervention into ALL the markets, or the additional $2 Trillion Yen injection yesterday that comes on top of tens of Trillions all injected in the past week.

So, we paper over and manipulate markets in such a manner that they cannot possibly correct for world events or the human condition. And thus we see massive price inflation in nearly all commodities.

I was accused yesterday of being overly cynical. It’s true that I’m losing my life long natural optimism for the human condition. It is, however, the world that is changing and not just my outlook. Corruption is more rampant than ever, just look at the current AIG fiasco and the obviously corrupt Treasury Department and “Fed” actions surrounding Maiden Lane “assets.” The corruption and fraud seem to be never ending and the politicians and agencies who are supposed to “police” do nothing, they are just as corrupt. ALL the markets are captured by just a few individuals WHO control the production of “money” (debt). Our entire economy, and all our markets are nothing but fraud and false instruments that have turned into a marketing branch for those producing that money.

And YES, you need to consider the safety of your food supply! Indeed, just yesterday radiation traces from Japan were found in Seattle! Oh, but it’s nothing to be concerned about, just traces. Well, what happens when trace amounts accumulate day after day onto the farmland and water that comprises our food supply? Is the radiation event over? When will it end? The corporation who owns the nuclear power plants seem reticent to stop the release of radiation, they are evidently more concerned about “saving” their assets. But the truth is that those reactors are well beyond saving. Yet they pour sea water over nuclear waste causing contamination of the air, ground, and sea. Instead, they could be dumping sand and concrete in an attempt to stop the release of radiation. But no.

And thus you should be concerned about the safety of your life’s sustenance going forward. Ignoring these very real and legitimate concerns is simply not rational.

By the way, it is reported that the radiation levels 20 miles from the site are 1,600 TIMES normal! Hey, how long has it been now? At least in a nuclear explosion the radiation event occurs and then ends quickly. What happens when radiation is spread over days and days? And why are we not discussing the possible effects on the food chain? Instead, all official communications are meant to only placate – “trust them,” the experts say it is of no concern – here is the depth of their communication with the public:
Low radiation levels from Japan detected in Washington; no health risk

OLYMPIA - A Department of Health air monitor in Seattle has detected trace levels of radiation in connection with Japan’s nuclear emergency. The minuscule amounts of radioactive iodine are millions of times lower than levels that would be a health concern. Despite these very small amounts, the state’s overall background radiation levels haven’t risen.

The positive results are consistent with findings reported by federal and Canadian partners, and by independent researchers. As expected, because of the distance from Japan and air mixing, radiation reaching our state is so diluted there is no health risk here, making protective action unnecessary.

People in Washington shouldn’t take potassium iodide, also known as KI, because of what’s happened in Japan. Only people who work in or around nuclear power plants during an emergency, or who live near such a plant and can’t get away, should take KI.

Got it? NO health risk. As if anyone of these experts has studied and determined the effects caused by prolonged exposure such as this…

Well, if they stop the release of radiation and the exposure is truly short term, then great. But if they keep stalling the inevitable, and fail to contain the radiation, then it absolutely can get worse and not better – their assurances mean little to me.

And the markets, flooded with cash and controlled by HFT machines owned by the same people who produce the money and also own the exchanges continue mostly unabated. The SPX, however, is still within the confines of the recent down channel:

Each upstroke in the markets is matched with a down stroke in the dollar. On the monthly chart you can see that support has clearly been broken:

Not that the dollar index means much in reality. It is weighed against a central banker basket of depreciating currencies and thus is disconnected from the reality of what your promissory notes they call money can buy.

Meanwhile, in the REAL economy, Existing Home Sales cratered to a new low. Unit sales for February fell to only 4.88 million, down from 5.3 million, and way below consensus. That’s a 9.6% fall from one month – here’s Econoday:
The housing sector may be suffering another setback, at least based on the February report for existing home sales which fell nearly 10 percent to a lower-than-expected annual rate of 4.88 million. Year-on-year, sales are down 2.8 percent. Declines are evenly split between single-family homes and condos and are also evenly split across regions.

The bad news continues: supply is up and prices are down. Supply rose 3.5 percent to 3.488 million homes in what is 8.6 months of supply at the current sales rate, up from 7.5 months in January and even above year-ago February supply of 8.4 months. The median price fell 1.1 percent February to $156,100 with the average price down 1.4 percent to $203,000. Year-on-year, the decline for the median price is deepening, at minus 5.2 percent, but is steady for the average price at minus 2.7 percent.

Distressed sales made up a very heavy 39 percent of all transactions with cash transactions at 33 percent, a very heavy proportion pointing to bottom fishing by investors but also reflecting still tough credit conditions for ordinary home buyers. The economy, unlike other cycles, has been able to recover nicely even without the housing sector. New home sales data will be posted on Wednesday.

And there’s the lie, isn’t it? “The economy, unlike other cycles, has been able to recover nicely even without the housing sector.”

Uh huh, and without employment too!

And gee, could it be that the economy is not really recovering at all? Gee, what else is different about this “recovery?” Ummm, could it have anything to do with the creation of TRILLIONS upon TRILLIONS of paper notes used to the benefit of a few? Uh huh.

The House Price Index and Richmond “Fed” are released at 10 Eastern… not sure anymore what is real or what has meaning… it all seems to be a façade to me.