
There are all kinds of warning signs in the Financial World these days. For one, WTI Crude in spite of adequate above ground supplies continues to creep higher, closing again higher this week than last. And as we write, WTI is over $96/bbl. It would seem crude is telling us that Price Inflation is intensifying. Not a particularily good sign when interest rates seem to be getting ready to end a long multi-decade decline from the 21% high the Fed Funds hit back in the early 1980’s
The Legendary Financial Writer, Richard Russell expresses justifiable concern. Russell is 88 years old and has seen it all since he climbed out of his B-25 Bomber at the end of WW11 and began his career studying Financial Markets. In this June 11th comment from his terrific Dow Theory Letters, Richard seems to be sounding an alarm of some sort:
“Turning to Bernanke, he practically guarantees that the stock market will go up. Join him and make a guaranteed easy killing. Me, it’s all too much for me. I’m watching the show, and frankly, I’ve never seen anything like it. As for Obama – he has no respect for privacy rights, freedom of the press or due process of the law. The country is going a bit crazy, and the stock market reflects it. As my old friend, the late Eliot Janeway, put it, when the president is in trouble, the market is in trouble. And this president has a lot more troubles than he can handle.
“As for the US, I have the feeling that the wheels are coming off the limousine. The IRS turns out to be a political weapon. Our Attorney General is a liar. We’re being spied on via every e-mail and every telephone call we make.”
Might be time to heed the Russell’s “warning” and start preparing for some big changes. And when interest rates go up……
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