201010.31
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Weekly Economic and Market Review

It’s not exactly the Newsweek indicator but anyone with contrarian instincts had to note the cover story of Barron’s this weekend, Bears Beware!, with at least a modicum of concern. The story concerns the magazine’s recent Big Money Poll survey of money managers who it turns out are – surprise! – bullish on stocks. I’m…

201010.28
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Better Performance On a Gold Standard

From the Wall Street Journal: From 1947 through 1967, the year before the U.S. began to weasel out of its commitment to dollar-gold convertibility, unemployment averaged only 4.7% and never rose above 7%. Real growth averaged 4% a year. Low unemployment and high growth coincided with low inflation. During the 21 years ending in 1967,…

201010.26
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Hussman: QE Will Fail

John Hussman is a must read this week: The belief that an increase in the money supply will result in an increase in GDP relies on the assumption that velocity will not decline in proportion to the increase in money. Unfortunately for the proponents of “quantitative easing,” this assumption fails spectacularly in the data –…

201010.26
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Thank You China

John Cochrane on our China policy: What’s the right policy toward China? They put a few trillion dollars worth of stuff on boats and sent it to us in exchange for U.S. government bonds. Those bonds lost a lot of value when the dollar fell relative to the euro and other currencies. Then they put…

201010.24
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Weekly Economic and Market Review

Ben Bernanke and the other members of the FOMC (Financial Oligarchy Manipulation Council) have said that their decision to implement further monetary easing is dependent on the incoming economic data. Presumably that means if the data continues to scare the pants off the politicians – who fear nothing more than being held responsible for their own actions…