Wednesday, May 27, 2015

Wednesday open news.

Here's more news for you:

Liz Ann Sonders - market perspective. She (or more likely that panty-piddling sissy Kleintop) expects more volatile prices moves as the US gets closer to a rate hike. She (or more likely that panty-piddling sissy Kleintop) has forgotten entirely about "corrections in time" and how they replace corrections in price.

Yanis Varoufakis - austerity is the only deal-breaker. And because the IFKAT are still demanding austerity, despite Olivier Blanchards years-old mea culpa, indicates that the best thing for Syriza to do is to call all bluffs and go nuclear. Because as the Krugginator says,

Kruggers - Grexit and the morning after. Quote:
What I would urge everyone to do is ask what happens if Greece is in fact pushed out of the euro. (Yes, Grexit — ugly word, but we’re stuck with it.)

It would surely be ugly in Greece, at least at first. Right now the core euro countries believe that the rest of the euro area can handle it, which might be true. Bear in mind, however, that the supposed firewall of ECB support has never actually been tested. If markets lose faith and the time for ECB purchases of Spanish or Italian bonds arises, will it really happen?

But the bigger question is what happens a year or two after Grexit, where the real risk to the euro is not that Greece will fail but that it will succeed. Suppose that a greatly devalued new drachma brings a flood of British beer-drinkers to the Ionian Sea, and Greece starts to recover. This would greatly encourage challengers to austerity and internal devaluation elsewhere.

Think about it. Just the other day the Very Serious Europeans were hailing Spain as a great success story, a vindication of the whole program. Evidently the Spanish people don’t agree. And if the anti-establishment forces have a recovering Greece to point to, the discrediting of the establishment will accelerate.
But to be a German, you have to be pig-headed and continue suicidally racing toward the abyss, instead of admitting your errors and apologizing to the people you've hurt. That's yet another lesson from 1933-1945 that they still haven't learned. - China be buyin' up all them miners. Zijin buys properties from Ivanhoe and Barrick, which must mean the Chinese intend to keep accumulating gold for the foreseeable future. Smarten up, you white-ass honky crackers!

Reuters - China sets up $16B gold investment fund as part of Silk Road initiative. Again, that must mean the Chinese intend to keep accumulating gold for the foreseeable future. But you go ahead and keep puking gold into thin bids, honky. Build yourself a big massive short position. Cuz you're right and China's wrong.

Evan Soltas - is growth understated? Sure. At work, we save a lot of money on site visits by looking at the project area in Google Maps street view. But the money saved goes into the pocket of the capitalist exploiter, as the guy in the comments section noted, so it'd still be measured.

John Quiggin - opportunity cost is a Fabian idea. This is what Friedrich von Wieser said when he invented the term "opportunity cost":
Instead of the things that would be more useful, there are things that pay better. The greater the difference in wealth, the more striking are the anomalies of production. The economy provides luxury to the capricious and greedy, while it is deaf to the needs of the miserable and poor. It is therefore the distribution of wealth that decides what will be produced, and leads to a consumer of a more anti-economic variety: a consumer wastes on unnecessary, guilty enjoyment that which could have served to heal the wounds of poverty. —Friedrich von Wieser, Der Wert Natürliche (The Natural Value), 1914.
That is not something you're going to see reprinted in that Nazi pig Mankiw's intro economics textbook, now, is it?

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