Oil prices, world markets affected by Japanese quake
Oil prices have dropped, and currencies in Japan, China, and Singapore will be affected.
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While US consumers have been scared into not spending, their elected representatives in Washington continue to believe additional spending is just what the country needs. A report released yesterday showed the US government posted the largest monthly deficit ever in February. The gap totaled $222.5 billion last month compared to a $220.0 billion shortfall in February of 2010. Fed Chairman Bernanke is worried about the size of this deficit, as he warned lawmakers last week that the deficit threatens to eventually push borrowing costs higher and curb economic growth. But congress is at an impasse on how to reduce the deficit, and therefore we simply continue to set new records of fiscal indiscipline. Not good for the future of the US!!Skip to next paragraph
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And finally, Chuck sent me the following notes yesterday, and they play right into the fact that the US set another monthly deficit record:
A reader sent me this story that I would like to share… “PIMCO’s Total Return Fund, the world’s biggest bond fund, has dumped all US government-related securities, including Treasuries and agency debt, a source familiar with the fund’s holdings said on Wednesday. In January, Pacific Investment Management Co.’s $236.9 billion Total Return fund slashed its US government-related debt holdings to the lowest level in at least two years and increased cash and debt holdings from other developed nations.”
Now… Doesn’t this tell us all that I’ve has been on top of the game here with regards to the Treasury Bubble, and how no one should be looking to own them? Wait till you hear what China has been doing! That’s coming, and Chris will be sure to fill you in, but, the reports I’m getting from the ground is that China is blowing out of Treasuries as if they don’t want to be the last country at the “exit door”…
I’m so scared right now… Scared for our country… Every night, I say a prayer for our country, and this is what I’m thinking of when I do so… We’re going to become a country of QE, and incestuous bond buying…printing of money…and debasing the currency… Please, someone wake me from this nightmare! And it’s not just Treasuries I wouldn’t touch with someone else’s ten-foot pole… Check this out from CNBC… “Massachusetts mayors are warning state lawmakers that without dramatic changes to the way, municipalities provide health care to their public workers, cities and towns will face dire fiscal straits for the foreseeable future, threatening core local services from police to road repairs.” The hits just keep coming for a country that wants to keep increasing its deficit spending, folks… OK, that’s enough bad news for someone that’s about to board a plane for Spring Training… Bye!
Recap… The earthquake (and tsunami) that hit Japan has rallied the yen and dropped the price of oil. Singapore will likely let their currency run up to combat inflation, and data out of China suggests there is more inflation on the way. Oil tumbled, bringing down the value of the Mexican peso and Norwegian krone. Data released yesterday show the economic recovery in the US is stumbling, and Chuck shared his thoughts from Cardinal’s spring training.
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