Tuesday, February 3, 2015

Some Tuesday news

Here's some more reading for y'all:

Brett Steenbarger - on negative divergences in the market. Again, this guy is clever. Then again, this is really just intermarket analysis, isn't it?

FT Alphaville - negative rates and Gesell taxes. Interesting points made peripherally here: for the average consumer, we pay negative rates to hold our money every day. Banks might pay us a marginal rate of interest, but then they screw us with service charges. And then when we do try to spend our money, we find out that its value deflates every month due to ever-increasing prices that the government fails to pick up in its inflation stats because of bullshit like chained CPI. The working class hasn't made a positive rate of return on deposits in a long time. So maybe banks deserve to experience a negative rate of return?

FT Alphaville - US labour compensation update. The argument always is that wage pressures are just around the corner. This argument tends to come from right-wing economists, though: are they maybe blind to the fact that they have destroyed workers' power through 30 years of anti-labour agitation? And maybe the worldwide deflationary collapse is a result of the victory of the kleptocratic elite?

New Deal Demoncrat - oil prices have probably bottomed. Gutsy call, er, probably. Speaking of which: I wonder if some of the gold action recently is the artefact of a long-gold-short-oil trade? I mean, that's a sensible pair to put on when you're betting on worldwide deflation, no?

Mining.com - aluminium F-150s secretly tested at Barrick mine. Good for Ford! People will still want to buy their trucks after all. So quit selling!

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