by MN Gordon
We wandered around the Coachella Valley for several days this week. If you’ve never been to the area you aren’t missing out. It’s a giant desert valley centered about 120 miles due east of Los Angeles.
Some people go there to golf. Others go to retire…and die. We, on the other hand, were there strictly for business and we couldn’t wait to leave the moment we arrived. It was hot, and dry.
So we conducted ourselves the only way we know how. Serving our client with interest, industry, and integrity. Then we made a beeline west the moment it was tolerable to do so.
Making money was the purpose of the business trip. Saving some of it is the objective. Naturally, making money is easier than saving money. But that doesn’t mean one shouldn’t pursue saving money any more than one shouldn’t pursue healthy gums.
While saving money is simple…you spend less than you make. In practice, it’s (Read More....)
. . . → Read More: Foundation for Massive Wealth
by MN Gordon
One of the more bewildering and frustrating things about life is that you rarely get what you expect. You set out and strive for a certain goal with all the excitement and energy of a child. You may think you’re doing all the right things. You take all the logical steps. You make big plans…dream big dreams…
But, when it’s all said and done, you never know what you’re going to get. Often you end up with the exact opposite of what you thought you wanted. This inconvenient truth is evidenced by the contents of a box of chocolates. It is also apparent in the outcomes of grand geopolitical engineering schemes.
After the destructive nationalism of WWII, European nations desired a more integrated continent. The European Union’s original architects envisioned a united Europe where a single market, common currency, and shared economic prosperity, (Read More....)
. . . → Read More: Looming Greek Default is the IMF’s Problem
by MN Gordon
On Wednesday, Federal Reserve Chair Janet Yellen offered several insights into what she wants you to believe she’s doing. For starters, she wants you to think that, definitely maybe, she will raise rates soon. But not too soon. And certainly not now.
Apparently, the Fed believes the economy is strengthening. Though it’s not strengthening quite enough to raise the federal funds rate from practically zero…where it has reclined for over six years. That would take a willingness to deflate the stock market.
Naturally, the Fed doesn’t want to deflate the stock market. They want to inflate it. For everyone loves an inflating stock market. The appearance of ballooning wealth makes one feel richer, smarter, better looking, and younger too.
Following the Federal Open Market Committee meeting, and the obligatory Fed statement, stocks immediately spiked. The DOW jumped 180 points. Yet the gusto quickly faded…and the DOW finished out the day just 31 points from where it started. Then, yesterday, the animal spirits roared back to life; the (Read More....)
. . . → Read More: Lost in Transmission
by MN Gordon
Zimbabwe officially retired the Zimbabwe dollar last Saturday. This marked the end of a devastating monetary experiment that shattered the country and pushed all accrued wealth beyond its borders. The country will be picking up the pieces of what little remains for several generations or more.
If you recall, the Zimbabwe government confiscated private farms from white landowners in the late 1990s. From what we gather, the stated purpose of this was to correct the ‘injustices of colonialism’. How this exactly would achieve these objectives is unclear.
But it had the effect of supplanting productive farmers with inexperienced farmers who didn’t know how to make the land work its magic. First, food production fell by 45 percent. Then the banking sector collapsed, and farmers were unable to obtain loans to support their failing farms.
By 2007 the unemployment rate had spiked to 80 percent. Thus the Zimbabwe central bank resorted to the printing press…emitting a seemingly endless supply of paper currency. In turn, Zimbabwe (Read More....)
. . . → Read More: Going Boldly from Decent to Indecent
by MN Gordon
Something practically impossible happened on Tuesday. It rained in Los Angeles in June. Not a lot…less than a tenth of an inch. But it was enough for us to discover we had a hole in the bottom of our shoe as we crossed John Fante Square.
Yet that wasn’t the only thing practically impossible to happen on Tuesday. Bond and gold markets simultaneously projected inflation and deflation. Yields on the 10-year Treasury note jumped to 2.41 percent, anticipating inflation. Yet gold dropped 0.19 percent to 1,175 per ounce, anticipating deflation.
On Wednesday, things were still a little discombobulated. Ten year Treasury yields eclipsed 2.47 percent, while gold held steady. Then, yesterday, yields on the 10-year Treasury note pulled back to 2.38 percent. Gold held at about $1,182 an ounce. Crude oil bounced around $60 a barrel.
The stock market continues to yo-yo up and (Read More....)
. . . → Read More: Riding the Waves
by MN Gordon
Hillary Clinton’s condescending utterances have received so much gratuitous applause from Liberals over the years that it is now fatiguing to muster dissent. What the nagging shrew lacks in substance she compensates for with longevity…and a seemingly endless pool of financial backing.
No matter how much you think you’ve seen the last of her, she flares up like ringworm jock itch at the most inopportune times. She just won’t go away. How is it, that in the year 2015, we must endure another bout of Hillary? It seems this has been going on forever.
Back in the year 1997, for example, we recall being greatly belabored by an intellectual Progressive’s reverences for Ms. Clinton. The Great Thinker placed a great deal of importance on her dim intellect…that she would lead us into the Promised Land.
We don’t know whatever happened to this happy fellow. Perhaps he’s still advancing the cause of democracy to better suit his existence at the expense of his friends and neighbors. Regardless, (Read More....)
. . . → Read More: Hillary Clinton Duh? No Duh!
by MN Gordon
Just like the clockwork of a rooster’s call at dawn. On the first day of June each year, coastal Southern California becomes encapsulated by dense gloom. You can guarantee it.
Out of state visitors mistake the gloom for smog. But it’s something very different. For the legendary Los Angeles smog disappeared in the early 1990s when the state enacted mandatory vehicle smog testing.
What a hassle and annoying expense. But at least the San Gabriel Mountains are now visible from Long Beach most days of the year. Plus school kids rarely now have recess called off for elevated ozone levels…unlike the good old days.
June gloom is a natural occurrence quite different than smog. Warming temperatures in the inland region draw the dense grey marine layer several miles in each morning where it sits over the vast coastal plain. Blue skies don’t appear until the sun burns the miasma off around 1 PM only to be covered up again by the following morning.
Some can’t stand it. Others enjoy the brief – about 3 week – reprieve from the (Read More....)
. . . → Read More: Forecasts of Gloom