Blimey ! Watermelon is now $8.90 from $5.95 ! A lesson in Plutonomy in Spring amidst March Madness
If I was on a watermelon diet, I would be 50% poorer for my meal !
Blame it on my grandfather who was a math prodigy of sorts in his days, that I am blessed with faint remnants of the gene that has found use in observing supermarket prices.
When I can’t find myself a decent asset that returns 50 %, I should have looked to watermelons except that there are no Watermelon Futures (WMF would be a nice ticker).
Welcome to the middle class squeeze folks. Richer and yet mostly, poorer citizens of the world. This is Plutonomy.
A plutonomy is a form of capitalism that is designed to make the rich who control a nation’s government and its economy—aka, the plutocrats—even richer. Citibank strategist in 2005, Ajay Kapur coined this term. He has since left the bank.
This is the original article I got off the web. Plutonomy- Buying Luxury, Explaining Global Imbalances
The original idea was that wealthy Western bloc countries were powering the world, leading to “global imbalances” with the countries that “have-not”. That cannot be further than the truth but the essence of the argument can be drilled down to individual countries and social stratas.
Best case in example is the National Congress of the Communist Party of China and the wealthy elite in their midst, making the American Congress look very much like small change.
What about Singapore ?
” IF YOU CAN SELECT A POPULATION AND THEY’RE EDUCATED AND THEY ARE PROPERLY BROUGHT UP THEN YOU DON’T HAVE TO USE TOO MUCH OF THE STICK BECAUSE THEY WOULD ALREADY HAVE BEEN TRAINED. IT’S LIKE WITH DOGS.”
LEE KUAN YEW
THE MAN AND HIS IDEAS 1997
A senior hedge fund manager said I am way too bearish. He said jobs are being created, household leverage has been falling, Greece is over, the world is a healthier place with foundations for growth towards a better future.
Even Formula One wants to launch a USD10 billion IPO in Singapore.
I got to admit, I could be wrong.
But Maudlin asked, “Where will all the jobs come from to get us back to full employment ?”.
And CRT Capital says the”low paying” jobs account for much of NFP gains.
EM is slowing and we are in the midst of a global currency war. But it appears that watermelons are not the best performing commodity class in the past 2 years.
From 1 Jan 2009, here are the returns of commodities.
Gasoline, I understand. But Orange Juice and Sugar ? Silver is quite mind blowing too. Poor Nat Gas. Its not like it will be replaced by farts tomorrow. hahaha BUT ALL NOTHING COMPARED TO APPLE SHARES ! Since 1 Jan 2009, Apple shares are up 562% !!!!!!!
Yes. Things are good. There are not enough trees in the world to make enough paper for us to print the money that is circulating in the system. Lets all just imagine that its there. There is not enough gold and silver in the earth to deliver for the settlement of a single futures contract. Lets all just imagine that its there.
As our bank accounts inflate and our property prices inflate and we feel richer by the day eating Lean Hogs, Cocoa and Wheat, we remember the first golden rule of Plutonomy.
“In order to sell the idea of plutonomy to the citizens of a democracy, the plutocrats must convince average citizens that trickle down economics will not only work, but ultimately make it possible for them to get rich, too.”
That is why I choose to spend more time in my virtual world these days. In the blog, and all my various expensive APPs purchases. I cannot see any light at the end of the tunnel in a world where it is acceptable that first world countries can go bankrupt; where youth unemployment will be a drain on aging society; where 3 billion chinese and indians are aspiring to own Pradas, and maybe eat more meat ? (how about Lean Hogs ?); and where a social networking site is seen as potentially more valuable than FOOD.
Its the Spring Equinox today. There is a reason for the term March Madness – astrologers say increased energy and life force comes with this season. This is also a reason why suicides peak in April.
Conclusion : Big picture. Going set up that XAU/EUR trade, average lower on the VIX and buy some more of that land bank in Charlotte, N Carolina.