Social Media, Revolutions, and Oil

I hate the term social media.  I'm not really sure why.  I'm not much into Facebook but understand the younger generations' use and interest in keeping up with their friends.  The recent violence and demonstrations in North Africa seem to be spreading and the authorities have been quick to ban Facebook, Twitter, as well as texting and even in some cases internet access.  This will not end well.  I'm certainly not an expert on North African politics, but I understand that some of these so-called democracies have suffered from corruption and now thanks to helicopter Ben, rampant food inflation.  You can blame the speculators if you want.  Apparently M3 has been flat but how can you believe old Benny that he isn't increasing the monetary base with QE2.  With Obama's state of the union, it has become clear that there is no polictical will to decrease the $1.5 trillion gap, so it looks like QE3 and QE4 are on deck.  This is bullish for gold as well as other commodities.  I digress here, but the point of this post is really about oil.  Since we already have an investment in gold and agricultural commodities, we might consider adding oil in the short term.  We've had a recent pull back in oil (and gold) and with fires rising in North Africa, one has to wonder how long before revolutionary flames in the Middle East start up again, and we all know what that means to the price of oil.

I Blame Sarah Palin

for the Tuscan shootings. Despite all the rhetoric and political correctness of trying to distance the right-wing media (and talking-heads) from the shooter, there is no doubt: words matter. As Giffords herself presciently foretold, "words have consequences".

What does this have to do with our club? It turns out the deranged killer had an obsession with monetary policy and with creating a “new currency". In a Youtube video called “Introduction: Jared Loughner” he writes, “No! I won’t pay debt with a currency that’s not backed by gold and silver!”
So it seems this fringe movement is gathering steam... :)

Hayek vs. Keynes Rap

Happy New Year, associates!

Here's a light-hearted look at the opposing political-economic theories.A Hayek vs. Keynes Rap.