Friday, June 28, 2013

Consumer sentiment prints money

The consumer sentiment numbers out this morning show a populace that is increasingly optimistic about the future. Despite weakness in the markets the sentiment remains high.

The Federal Reserve has recapitalized the banks. They have money to lend.  So far there has been little demand for credit. I think that will change as the sentiment stays strong. It is debt creation that is the actual money printing of a fractional reserve system.
When the sentiment changed in the Reagan years the money printing took off along with the debt.
Can we debase this currency? You bet we can! We are Americans!
The bottom is in in gold and silver. Buy'em boys!

"Business activity in the U.S. cooled more than projected in June, a regional report showed. The MNI Chicago Report’s business barometer dropped to 51.6 from 58.7 in May, which was the highest in more than a year. A reading of 50 is the dividing line between expansion and contraction. The median forecast of 55 economists surveyed by Bloomberg was 55.

Consumer sentiment fell less than forecast in June from an almost six-year high a month earlier. The Thomson Reuters/University of Michigan said its final index of confidence eased to 84.1 this month from 84.5 at the end of May, which was the highest since July 2007. The median forecast in a Bloomberg survey of economists called for 83 in the gauge after a preliminary reading of 82.7.

Japan’s economy strengthened in May as industrial output increased by the most since December 2011 and retail sales climbed, data showed today, bolstering Prime Minister Shinzo Abe’s push to end deflation. "

Control your risk,

Oh, by the way, did I mention that the Baltic Dry Index is up again today?!!

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