Do the Swiss Envy Canadians Paying Higher Prices? Ep 77

Published: April 27, 2015, 8:18 p.m.

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\\n\\t* S&P and the NASDAQ made new record highs
\\n\\t* Stock market continues to ignore all the bad news about the economy
\\n\\t* Bad news is not being ignored in the foreign exchange markets
\\n\\t* Negative economic news is buoying the stock market because it removes fear of interest rate hikes
\\n\\t* Weak economy means more cheap money which means higher stock prices
\\n\\t* Oil prices hitting highest prices of the year
\\n\\t* Gold is back above the 1200 level
\\n\\t* April PMI Manufacturing Flash Index at 54.2 biggest miss ever
\\n\\t* New Home Sales tumbled by 11.1% - biggest drop since July of 2013
\\n\\t* March Durable Goods slight bump based on military aircraft, but less transportation, the index unexpectedly declined .2%
\\n\\t* Durable good orders, less defense and transportation dropped for the 7th consecutive month
\\n\\t* April Service Sector PMI missed lowest expectations at 57.8 - the biggest miss ever
\\n\\t* Dallas Fed Manufacturing Survey - recorded significant drop at -16; biggest losing streak ever
\\n\\t* There will be a delayed reaction from the market to first quarter\'s bad economic news on top of this quarter\'s economic news
\\n\\t* A Boston Fed official is considering retaining "balance sheet tools", i.e. QE
\\n\\t* In other words, the Fed is considering not having an exit strategy - because it can\'t exit
\\n\\t* We have done all sorts of crazy things that we never would have done but for zero percent interest rates and QE
\\n\\t* A market that was built for 0% interest rates can\'t handle 2% interest rates
\\n\\t* The product of all this stimulus will be big increases in prices, and the Central Banks are setting the stage for higher inflation
\\n\\t* Declining Swiss consumer prices are described as "dangerous"
\\n\\t* Currently, the Swiss consumers are enjoying lower prices and do not need a government "cure"
\\n\\t* The law of supply and demand is so simple that only an economist would fail to understand it
\\n\\t* Keynesians\\xa0will spin ever-conflicting news to support their theory
\\n\\t* Fitch has downgraded Japanese government debt to A- because or the Japan\'s deteriorating fiscal condition
\\n\\t* Based on that logic, why is the U.S. AAA?
\\n\\t* There is a general fear of downgrading U.S. debt, based on fines levied against the S&P
\\n\\t* The real problem will be the collapse of the dollar, which means the debt will be repaid in dollars without purchasing power
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