What China has to do with the price of coffee in my office . .

Today were drinking more coffee. We’re on edge because the government has thrown a monkey wrench into our system. What has changed and how could it affect us? First, we are unsure how China and the US markets are going to respond to Obama’s tire tariffs. Its not uncommon for the president to take action in protecting domestic industries early in their terms but here is the issue. Obama, unlike President Bush, has decided to aim these tariffs directly at China rather than globally. I know the Bush steel tariffs were not totally directed at China like the tire stuff it. China strongly opposes these tariffs and feels as “unfair trade” from the U.S is cheating them. This is partially true. But keep in mind the bottom line is that the market does not know how these two governments will react. Thus, the uncertainty that will cause coffee futures in trading room floors to increase . . .

Obama = Stalin?

No, I just wanted you to read this article from David Reilly. Yes, I know I have said it a million times that David is the best journalist covering the banking fiasco. Here is the link.

Bondholders have a new risk to contend with — the Obama administration’s policy of “shared sacrifice.”

The bottom line is that Obama is completely unconcerned about the rule of law when it comes to bondholders rights, but not prisoners in Guantanamo Bay. Screw the terrorists, I am not into ‘shares sacrifice’ when it comes to a legal contract for a company to pay me my money I lend it to them. Up until now, I said Obama was not a socialist, but I am starting to worry. So should you. Unless, of course, you are a Republican, in which you already think he is a socialist. Either way read the piece and let the blood boil.

Pres. Obama: Counterfeiter-in-Chief?

Lee Eugene Munson and Patrick Kirts comment on the U.S. currency. Published on Seeking Alpha

I don’t quite remember when, sometime in the past year, I first began hearing average people say that the government ultimately has the power to fix the economy, because it can just ‘print money,’ but, in a few short months, the sentiment has become commonplace. It boggles the mind, but it now seems to be a truth commonly accepted by just about everyone–politicians, journalists, investors–even the man in the street. At Portfolio Asset Management this change in sentiment has altered part of our investing strategy. Gold is now back on the menu along with shorting treasuries. Alternative assets have gone to the top of our list of potential funds and the bond funds we hold are under tremendous scrutiny. The bottom line is that we are under fire–not by the market itself, but by the government policy of debasing the currency. Few are vigilant and the delay in the market reacting to the changes may take time. Meaning, some sound strategies may not work even though a rational investor would say otherwise.
Read the full article here.