Me Lemming, You Lemming, We All Lemmings

The Tipping Point is nigh.

Zerohedge had a prettier picture of lemmings in this article.

Lemming mode involves the inability to recognize danger, called normalcy mode. Do read the article above in a more global context.

Things do not look right but let’s leave the thinking to the important people.

In the book The Fourth Turning by Strauss & Howe, which is heavily quoted in the article above, we probably will not know when it will hit us.

“Human history seems logical in afterthought but a mystery in forethought. Writers of history have a way of describing interwar societies as coursing from postwar to prewar as though people alive at the time knew when that transition occurred.” –Strauss & Howe – The Fourth Turning


8-Mar-12 DJFxtrader Brazil Central Bank Cuts SELIC Rate to 9.75% from 10.50%
9-Mar-12 CNN Money Currency Wars : Brazil Says “it’s on”
28-Mar-12 DJFxtrader Brazil Heading For Lower Real Interest Rates – Central Bank Chief Meirelles
3-Apr-12 DJFXTrader Brazil FinMin Mantega : To Reduce Taxes, Keep fighting currency appreciation; weaker currency a subsidy, but not recognised by WTO as such;


9-Mar-12 Reuters RBI cuts cash reserve ratio by 75bp to 4.75% effective 10 Mar


Look Which Central Bank Has Printed More Than The Fed by Deutsche Bank.

China !

3-Apr-12 DJFXTrader Bank of Russia to keep Widening RUB Band, reducing interventions

Now Russia !

= B R I C s


QE, LTRO, BOE, QE2, BOJ, Operation Twist (2/3) ….. has led to money pouring into 1/3 of the world. Now the BRICs bite back, weakening their own too, with valid reasons too.

So the currency wars continue with a frontal attack by the BRICs, half of whom are in some internal political strife of sorts; Russia winning a half hearted elections, China and its disappearing politicians and websites act, together with a mad rush of hike wages across the country; election woes in India as well.

The problems do not end here in one  big political year.

1. Greek elections

6-Apr-12 DJFXTrader #Greece Elections Likely May 6 Or A Bit Later, Interior Minister Says [Dow Jones]

2. Irish debt referendum

27-Mar-12 DJFxtrader Ireland DPM Sets May 31 As Date For Referendum On EU Fiscal Treaty

3. French elections

5-Apr-12 DJFXTrader Sarkozy Would Lead Hollande in 1st round of France’s Presidential election

4. US DEBT CEILING (who cares about the US elections ?)

28-Mar-12 Zerohedge Geithner says US wont hit debt ceiling until late in the year.

and new SUB PRIME Crisis ?

22-Mar-12 WSJ Total Student-loan debt is over $1 trillion, roughly 16% higher than earlier estimate made this year


I suddenly have a feeling that the only thing holding us all together in an optimistic rave is only APPL US. If the world is feeling good because of Apple.

3-Apr-12 Zerohedge The way to think of Apple is not as a $63 company but one which has to sell $2.6 trillion in stuff over the next decade

Can AAPL and Facebook save us ?


As for me, the currency wars are escalating. Link to what I wrote 2 weeks back.

The dangerous game countries are playing now is Liar’s Poker or a game of dare. Wrote something about it last week. Click here.
“Each of these measures is undertaken with the expressed understanding that they will “stimulate the economy”.

But each and every one of those monetary means to the quantitative ends are financial economy measures.  There is no direct pipeline into the real economy.  ”

Yes. The only thing that everyone in the world is gunning for is Asset Inflation with the stimulus, and bubbling our way out of this mess. Stock buybacks are in the in thing.

As a result of the slated tax hike for dividends, corporations will be forced to take a hard look at the way they spend extra cash. They could start “potentially pulling back on dividend increases and increasing share buybacks,” says Howard Silverblatt, senior index analyst at S&P.

Stocks, property, commodities, art, antiques….

Yes, me lemming. Show me the Gold !!