Browning NewsletterDecember2010online

A must read for anyone interested in the real stories behind climate change.

“The most persistent question I get, when I
am giving my presentations is “Where do you
stand on the current global warming/climate
change debate?” The answer is “Firmly in the
middle, with both sides taking pot shots at me!
There is some good science on both sides and
some ridiculous pseudo-scientific claims on
both sides. It’s time for the scientific factions
to come together, resolve some issues and stop
calling each other Nazis and fear mongers.”

Evelyn Browning Garriss writer of the Browning Newsletter

Here are some quotes that came my way during 2010 that I hope you too will enjoy. It beats having to read another list of predictions for 2011 most of which will be wrong other than the observation that we will again be living in interesting times…

“Economics is extremely useful as a form of employment for economists”  John Kenneth Galbraith

“When all the experts and forecasts agree, something else is going to happen”  Bob Farrell

“The only thing necessary for the devil to flourish is for good men to do nothing.”  Edmund Burke

“Hell is empty. All the Devils are here”  Shakespeare

“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”  Mark Twain

As in the Bernank knows for sure 100% that he can control inflation…h.m.m.m.

The system only exists because of your participation in it – Anon

“Democracy is the art and science of running the circus from the monkey cage”  H. L. Mencken

“In three words I can sum up everything I’ve learned about life: it goes on”  Robert Frost

“If the people only understood the rank injustice of our money and banking system, there would be a revolution before morning.”

President Andrew Jackson, 1829

Still ahead of his time 181 years later…

“The difficulty lies, not in the new ideas, but in escaping from the old ones.” John Maynard Keynes

I think he means Keynesian economics…

The only function of economic forecasting is to make astrology look respectable. John Maynard Keynes

He was a Gemini – let’s hope there was only one of him..

And finally

You never know what is enough unless you know what is more than enough – William Blake

He was obviously contemplating eating a Christmas pudding…

Have a great Christmas and may the New Year bring all you wish for as long as you are careful in the process!

You know I don’t really want to talk about frankincense and myrrh at this time of year, but it is very important that we are rational in our views (as rational as human nature allows) and that we expend an equivalent amount of effort looking at the other side of the coin whether it be sovereign, eagle or kruger.

The powers that be (TPTB) are more than a little determined to maintain the status quo even to the extent of getting China to “take concrete action” to “ease the sovereign debt crisis”. Never mind that the EU’s Juncker says in a German TV interview that the euro is not endangered, and not in a crisis. There is no doubting the political will to solve the problem, but, with senior members of the “elite” declaring that there isn’t one, it indicates the difficulties in finding the right answers.

The dollar also finds itself under pressure as do most fiat currencies but of course the nature of the beast is such that one currency’s gain is another’s loss. There has been much talk about returning to the gold standard to bring some discipline to economies and markets and whilst there is little enthusiasm for this course, as David Fuller pointed out yesterday, (give yourself a Christmas present and sign up for David’s daily letter at www.fullermoney.com) none other than Nicolas Sarkozy has said that France would be leading the debate on the world’s future monetary arrangements when they assume the G20 presidency next year. So at least politicians in Europe are prepared to talk about it although that is probably all they will do…

From where Bernanke sits Fed money printing is going according to plan. The S&P 500 is up nearly 90% from the March 2009 low and the economy is expanding again so all is rosy is it not? Not if you one of the growing band of unemployed, disenfranchised homeowners living on food stamps in a state that is highly likely to default on its borrowings during the next 12 months. As 90% of S&P shares are held by 10% of the people, who will not be queuing up to get their “ration books” stamped, can we say that QE is a roaring success?

To quote from George Bernard Shaw: “You have a choice between the natural stability of gold and the honesty and intelligence of the members of government. And with all due respect to those gentlemen, I advise you, as long as the capitalist system lasts, vote for gold.”

These were Ben “Bernank’s” immortal words on February 25th 2010 to an ever gullible Congressional House Financial Services committee. This afternoon, in the third POMO this week (and it’s only Tuesday…) the Fed purchased $1.08 billion of a 2015 bond that the Treasury issued only 7 days ago! It is so craven that the pundits, who have been calling the issues that the Fed would buy back with such accuracy of late, did not have this stock on the list believing that the Fed could not be that “stupid”.

The Irish have had to swallow a few lies; in particular the one about the bailout being for the common good of the banks, Europe. Is the European “experiment” doomed? Have a look at the price of gold today…in euros; it speaks volumes.