Before we discuss "the markets" or whatever you want to call them now, let's briefly look at the situation in Japan, which has "officially" deteriorated. The breaking news over night that a "breach" in a reactor "may have occurred" and that the situation is now "very grave and serious" should be no surprise to keen investors watching world news events. For even laymen know that when radiation is detected thousands of miles away in Iceland, when radiation in drinking water 150 miles away is detected, when high levels of radiation in sea water miles away are discovered, when radiation levels 25 miles away from the epicenter in the air are so high one could get sick in hours if not minutes, when radiation is detected in milk and food and made unsafe -- we know at least one of those 6 reactors is leaking. Which is why it is particularly interesting the officials are just now saying "evacuations are encouraged" between the 12-19 mile "safe to stay indoors" zone when the US and all other nations had set the minimum limit at 50 miles. I wonder if money has anything to do with that?
Now that it's been admitted officially that the rods are exposed and likely have been since the March 14th explosions, we can now accept that this is beyond the Chernobyl accident. Of course, this has been known since almost 10 days ago that "Uncovered Nuclear Fuel Rods In Japan Could Ignite A Chernobyl-Like Disaster" as the title of this article dated the 16th of March states. Also 10 days ago, Japanese officials talked about a "lag time" of information as to the reason why the entire world was saying the disaster was much worse than they were admitting to. It seems the "lag time" they were talking about applied to them. Who's kidding who?
Of course, they can always raise the "healthy" limit of radiation exposure... oh, scratch that - they already did. This leads nicely into two other topics: 1) Is this event a foretaste of the way other gov'ts handle these types of situations, which have a very high probability of occurring and 2) if the markets even care anymore about any bad news, here, here, here, here, here and here just to start. Notice too, the timing of an "upward revised" GDP could not have come at a better time (I say show me the money!).
All that matters is the endless flow of money being pumped into the markets to keep them up. Do you have your rally hats on? A quick look at the markets shows green everywhere with a 100 point rally today. Remember the mantra - bad news is good news for the stock markets in this upside down world. At least the wealthy will be saved, as they dole out $20 million for their underground bunkers which have seen sales rise 1000% since January.
As reported here yesterday, Portugal needs $100 Billion in funding and fast. Not only did the entire gov't disintegrate, Portugal has run out of money; not to mention the ECB is looking at even more funding for Greece as well. Soon, Spain will follow. Then comes Ireland looking to get more or simply leave the EU entirely. If a major earthquake struck at the heart of Europe, perhaps the markets would have yet another reason to rally. Absurd, or is it? Take a look at the M1 money supply being pumped into the economy.
Thus, we will continue to see more inflation around the world in the things we need and use everyday, and deflation in things we want to keep as an investment such as housing. But who wants to hear about fundamentals? All that matters is the Fed's unofficial mandate to pump up the markets at any "cost" until the DOW reaches 54,000. Therefore, I leave you with the most important topic that means anything right now and for many months ahead - Japan.
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