Wednesday October 22, 2008 - 14:31:18 GMT
Share This Story
Black Swan Capital - www.blackswantrading.com
An Attack on Friedman from the PC Crowd
â€˘ The euro fell below $1.28 for the first time since November 2006 and the pound tumbled to a five- year low on speculation European central banks will cut interest rates as the global economy heads for recession.
â€˘ Russian companies may default on almost a third of local-currency bonds as soaring borrowing costs make it ``impossible'' to refinance the debt, according to the Bank of Moscow.
Key Reports Due (WSJ):
No major economic indicators scheduled.
"A major source of objection to a free economy is precisely that... it gives people what they want instead of what a particular group thinks they ought to want. Underlying most arguments against the free market is a lack of belief in freedom itself. The existence of a free market does not of course eliminate the need for government. On the contrary, government is essential both as a forum for determining the "rules of the game" and as an umpire to interpret and enforce the rules decided on. What the market does is to reduce greatly the range of issues that must be decided through political means, and thereby to minimize the extent to which government need participate directly in the game.â€ť
FX Trading â€“ An Attack on Friedman from the PC Crowd
I received an email yesterday, from a very smart man who happens to be a professor of sciences in one our top institutions. He wrote: â€śBeen stunned by the number of free market folks who squeal for interventions. I am appalled at the looting.â€ť Free market capitalism is now under attack from every two-bit â€śprogressiveâ€ť seemingly everywhere. It seems as if the US is swerving ever more deeply into the world of Ayn Randâ€™s Atlas Shruggedâ€”the looters want control and seem to be taking it.
Of course the looters cause has been enhanced greatly by our so-called â€ścapitalist on the Street.â€ť Many financiers wear the capitalist badge on their sleeves, but weâ€™ve learned they are nothing more than opportunists lacking principle and real depthâ€”looters with expensive suits. But the business world is not what we see on TV. It is poorly represented by men and women most admired by our mediaâ€”especially the financial industry types.
And those who should know better, the so-called â€śfree thinkingâ€ť academics at our so-called â€śinstitutions of higher learningâ€ť have learned political correctness and exploitation is a much easier task than the heavy lifting of independent thought (most of this gang resides outside the science building, but unfortunately not all). And now the attack on a great manâ€”Milton Friedman:
â€śMore than 100 faculty at the University of Chicago, where Mr. Friedman won the 1976 Nobel Prize in economics, are trying to stop the university from putting Mr. Friedman's name on a $200-million (U.S.) research centre. The opponents argue that the Milton Friedman Institute would compromise the academic integrity of the university and serve as a monument to Mr. Friedman's world outlook, which they say has largely been discredited.â€ť
â€śAcademic integrityâ€ť from this crowd is to laugh!
Friedmanâ€™s ideaâ€™s and constant struggle to get government off our backs has lifted billions out of poverty the world over. Is that not a worthwhile ideal for the â€śprogressivesâ€ť?
Of course not, because the means in which all these peopleâ€™s lives were enhanced was through private means of production, or at least, tamping down of government interference into the market. The looters donâ€™t like individuals controlling their own lives. They want to do that for them. So, their standard method of operation is to attack those we need the most, those who have done the most to achieve the ideal the looters imply they aspire to achieve. Thus, Friedman becomes a big target to exploit now that free market capitalism is under attack by those who either hate it because they know they canâ€™t compete in a world that was established to trade value for value or are too stupid to understand it.
Sadly, it is Mr. Friedman who we need right now. He was a man able to take the most arcane aspects of economic thought and boil it down to an elegant defense of free enterprise and express the essence using sentences we could all understand. His core message was the degree to which collective decision making flowing from government, or faculty members, overwhelms our individual right to choose is a major threat to us all.
US Dollar Index Has Cleared Many Hurdles â€“ Money to the Center Theme Still In-Play
US$ Index Daily: Next key chart resistance is 8730â€¦.
(Chart unavailable in text format.)
Continued deleveraging, which is triggering the money flow from the periphery to the center, seems the theme still in play. Thus, a technically overbought dollar lurches to even more overbought territory. This is a dangerous game at the moment for a technical trader who may rely on oscillators, so be careful out there and keep your stops tight. A correction is dueâ€”butâ€¦who knows? Not us!
Black Swan Capital LLC
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."