The following are few random observation on current events:
1. Economic News
1A. The recent turn for the worse for Great Britain’s economy has sent shock waves around the globe. I expect this bad news continue, and intensify in the months to come, especially once the full implications of the Credit Default Swap (CDS) derivatives fiasco become known.
1B. It is interesting to see that the COMEX spot silve [1]r and spot gold [2] markets are breaking out of their doldrums. Apparently, the big investors have come to realize that there are simultaneous credit market-spawned economic problems in North America, Europe and Asia. With the markets for currencies, bonds, equities and real estate all in turmoil globally, precious metals are rightly seen the only truly safe refuge for wealth preservation. There will surely be some more scary pull-backs on rumors of central bank metals sales, but I think that this could be a major turning point for the metals market. There is now a general sense of panic in the air, and the smart money is heading for the exits.
2.) Gun Control on the Fast Track
2A. Ever since BHO [3] was elected, gun, ammo, and magazine buying in the US has been at an almost frenzied pace. People can see what is coming. This is taking place even though there is not yet a scheduled congressional floor debate of the proposed re-vamped “Assault Weapons” and “High Capacity” magazine ban. This begs the question: What will the market be like once the debate is in full swing? Methinks that prices will at least double overnight. And then what will prices be like if an when a bill is passed? (Needless to say, that would be a Very Bad Thing. So please contact your Congresscritters, and do your best to stop any and all gun legislation.)
2B. I do my best to avoid tenuous conspiracy theories, but the timing of last weekend’s Miami Viciousness [4] with a ubiquitous Kalashnikov seems just a tad suspicious:: “These are weapons of war, and they don’t belong on the streets of Miami or any other street in America,” Mayor Manuel Diaz said. The Mayor and Miami’s Chief of Police “both demanded immediate reinstatement of the ban on assault weapons. The Mayor said [US Vice President] Biden has assured him the Federal ban on assault weapons will be reinstated in short order.” [Emphasis added.]
2C. The BHO Administration has wasted no time rolling out a series of Executive Orders (EOs) [5]. Both my gut and my informants inside the Beltway tell me that another EO will soon be added to the list with an importation ban on detachable-magazines semi-auto rifles (and possibly pistols), and for all magazines over 10 round capacity.
The recent CBS Evening News piece on the gun-buying boom [6] is evidence that this trend is big. It is so big that not even the Katie Courics of the world can ignore it. (Although they will do their best to soft-pedal it, and to deflect attention away from the BHO Administration’s civilian disarmament agenda [7], which includes renewal of the 1994-to-2004 Federal Ban, but with no sunset clause.)
The two preceding data points are evidence that the “news velocity” in America has increased and will continue to increase in the weeks to come. One could compare the economy and politics for the next 8 to 15 years to a roller coaster ride. The ride has already started. It is dark. Nobody can see the track ahead. There have already been some frightening dips and turns. But we are now nearing the big Deep Drama point on the track–you remember it–the one where everybody screams.