Now Playing: Marche Funebre
Topic: Politics, as usual..
January is of late, at least for me, not necessarily a welcome month. For the very vain reason of my birthday falling right into the first week. Recently though I thought I had reason to rejoice and look forward to the bristling first month of 2006: Alan Greenspan is going to retire! Until I remembered that the task of appointing his successor falls to the sitting president, i.e., George Bush. The tall Texan with an unappetizing streak of selecting unqualified members of his inner cadre to such jobs.
True to form, the little man selected Ben Shalom Bernanke for the job. A former professor for economics (and I know all about these, having been one), chairman of the White House economic advisors, and - as the future finance king of the world - a man who solidly lives in the past. We are talking Glasnost past here, when inflation was the all-consuming concern of monetary policy world-wide. Unfortunately for the markets, such a return to the good old bad old days spells even further curbs on what these past three years have been trends so flat they might be called Dutch. Under Greenspan's murderous reign the three major American stock-markets fluctuated about as much as Stanley Kubrik's 2001 monolith. Meanwhile a growing number of home owners and first time buyers find themselves saddled with mortgages inflated for no other reason than Master Alan's senile zeal to fight a dragon that long ago ceased to attack the castle.
The freshly crowned prince art the Fed looks set to charge the same gate, succinctly ignoring the real threat at the back door, where the crude oil comes in. Of course, you cannot quite blame the man for not looking over his shoulder; after all, that would be cutting into the boss' cadre's profits. So what if the combination of fake job statistics and crude oil prices are more dangerous to the world's stock markets than inflation ever was? Ours is a robust, two tier economy where those in the know (and on the right side of the gated community fence) do indeed know how to profit from the concerted action once known as NYSE and/or NASDAQ. And the rest of the world can go to hell, we'll soon see to that.