Jack the Pipper

I read in a Bloomberg story today that Bill Gross was expecting QE3 in some form or fashion thanks to the US economy entering what he referred to as “stall speed.”

The Australian dollar has done very well lately and over the last couple years. Why? Well, because it’s been a go-to currency to capture yield … in a global environment of extremely low yields.

It was kind of ironic, from the standpoint of my simple life, that my neighbor stopped by yesterday to give me some junk mail addressed to me, but put in his box.

One of our many loyal readers sent me a brief comment the other day (his longer comments are usually very entertaining.) He said, regarding Secretary of State Hillary Clinton being over in China to quell their worst fears of a US default

Envoy Hillary was launched on Asian markets yesterday to calm fears about Treasury bond default because her boss doesn’t want to stop spending like a drunken sailor. Spending is power, thus why we get all the obfuscation, double-dealing, and outright lies on a regular basis from our pols.

Did you hear? They’ve agreed to a robust bailout plan that increases the scope and effectiveness of the EFSF. It seems expected to succeed in resolving the crisis and stemming potential contagion.

It is the nature of market analysis and advisory newsletters to make predictions. I am going to make a prediction now …

Jim Grant, editor of Grant’s Interest Rate Observer, is an articulate and brilliant person. His ability to sum up economic events of the day in his entertaining and succinct manner is proof of his depth.

Sorry, but the last two days of rising QE3 potential and consequent price action just made me think of a rollercoaster. And from there I found myself singing the Red Hot Chili Peppers’ version of ‘Love Rollercoaster.’ (Truly funky readers may prefer the original from The Ohio Players.)

The fact of the matter is because the majority of people look to the government as their surrogate mommy and daddy (which explains the dismal political class we are stuck with as nearly half the US population is on some form of welfare), we will never get a real test of an Austrian School tough love fix versus the warmed over Keynesian stimulus gruel we are fed