May 18 (Bloomberg) -- Former European Central Bank President Jean-Claude Trichet, speaking yesterday in a lecture at the Peterson Institute for International Economics in Washington, suggested countries be stripped of their economic sovereignty when their inability to implement measures recommended by European authorities put other nations in the euro region at risk.
This has been the plan all along, hasn't it? Don't think for one minute that they forgot about the real agenda behind the turmoil. In fact, the turmoil makes such a nice excuse for someone or something to step in and "save" Europe. What they're really trying to save is the fantasy of collectivism. These people will never quit. Luckily, gravity won't either.
Remember this, because should Omamacare be upheld, this is the same line of thinking that will say that you can be stripped of your personal liberty when your refusal to implement measures recommended by US health authorities (no ice cream, no beer, no steak, no OTC vitamins, or whatever) puts other people in the insurance pool at risk.
***UPDATE 11:15am EST: Amazingly, this just crossed my desk . . .
Report: 'Fat Tax' Could Curb Nation's Obesity Problem
INDIANAPOLIS -- Health experts have been trying to combat obesity in America for years and have recently suggested a new way to solve the growing problem.
A new study suggests that imposing a fat tax on unhealthy food and drinks could help slim down expanding waistlines.
According to reports, more than 60 percent of Americans are overweight. Under the tax, a $4 cheeseburger would cost an extra 80 cents, RTV6's Stacia Matthews reported.
The other thing that I noticed this morning was that Andrew ---- Sorkin was wearing a hoodie on Squawk Box when I turned on the TV for a quick check of the futures. I don't even like to see him on a good day. Off it went immediately.
Thank God the sun has risen yet again, because I was starting to have my doubts.
Now that I've passed through the first challenges of the the day, it is the Aussie dollar that has my attention. Nice bounce, very nice. You can bet that on a daily chart, 1.02254 will be gunned for over the next several days, so I would watch that spot like a hawk. It will likely be a huge tell for risk appetite.
So will crude oil. Because if it decides to rally like gold has, my deepest fear may be coming true. And that is that the S&P is only correcting from the 1422.38 highs of April. Somehow, someway, there could be one last coordinated effort to goose it good. With guys like Trichet out there spreading more globalist mumbo jumbo, I've got to think the Fat Lady of the central bankers hasn't sung yet.
Yesterday was very good for my position. Both tranches of SPY calls expiring today are worthless, while the acceleration down finally got the inverse ETF delta to turn on the afterburners.
Leveraged ETFs trade much like options in that they move faster when they market is going their way, but more slowly when its against them. Sometimes it takes a few days of trend for the underlying leverage to Get Gamma'd. Yesterday was the day. I wish I'd fine tuned it to be sooner, but you can't have everything.
Also, the further the S&P falls, the clearer the waves are getting. Anything above 1328.41 without significant new lows would suggest that gold and the Aussie are onto something big.
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