Why this Country Needs Change

We are living with the financial equivalent of the Axis of Incompentency.  Incompetent not because they are dumb, they are probably three smart guys, two very smart, and one ok smart, but incompetent because their actions are not beneficial to the country they lead.  Yesterday President Bush had the gall in his news conference to talk about the strong dollar policy of his eight years, what is he talking about?  Treasury Secretary Paulson, while he hasn’t had much time to do nothing, is more like a talking Teddy Bear whose only function is protect Goldman Sach’s franchise.  And then there is good old Ben, the guy who acts like he was born without balls.  He had one more chance this morning to inact some shock therapy by doing a surprise coordinated rate rise with the ECB.

On the positive side, the two biggest sources of quick useful information that we use is the chartstore.com and John Mauldins weekly letter.  The last two letters of Mauldins, one by Louis Gave,  point to an interesting point that few are talking about, and that is in essence that the US money supply is not growing at a rate that supports further commodity inflation and that one of the main drivers of world wide inflation is the US deficit.  One thing that will most likely change  in a Obama administration is a shrinking of the deficit from current levels, hopefully only to a level of balance and not to a level of shrinkage in real terms, as that would cause a recession or even depression.  Cry baby Bill Gross said this week in his letter to Obama that he wants the next administration to increase the deficit, maybe we should add him to the Axis, George, Hank, Ben, and Bill.

7:24 AM CDT