300 years of history

"Why am I so sad on my wedding day?"

Gold watch

I think I said $850?

Not to mention the "bear market rally"?

And for now, I'm still a bear.

Not the end, as long as you and I breathe

Looks like the US is in the process of nationalising the banks and the stockmarket, loosely speaking, and the UK is following suit; now Mish says Russia and China are doing the same. All is falling into government hands.

I've been wondering recently: if, in the idealistic pursuit of universal peace and justice, we ever did manage to establish a World Government, and it became (as all human institutions do), inefficient, bureaucratic, undemocratic, corrupt and more or less evil, how would anybody escape? Where could we go to?

And Denninger is now singing a requiem for American government and democracy; perhaps prematurely - hasn't the often-mocked blogosphere uncovered a depth of feeling among the people in favour of liberty?

Why don't the Tories now declare themselves on Europe, etc?

Supposedly the Conservatives are as far ahead as they've ever been since Mori started doing polls. Meanwhile, the economy is set for a hard, hard landing and Labour have been in power for far too long to be able to blame anyone else.

This is a golden opportunity. The Tories should make clear their policies, including all the contentious and painful ones. In or out of Europe? In or out of our various war zones? Higher taxes or cut spending? What to do about the NHS, education and welfare? About our corrupt and overpaid financial community? About importing low-paid people; trapping our underclass in unemployment and benefit dependency, and rotting their health and sanity; and exporting people that it cost us a fortune to support, educate and medicate? And what about the dreadful farce of the voting system itself?

Because one of two things will happen:

1. The Tories will win, have a mandate to sort things out, and have plenty of time between now and 2010 to make the people understand who made all these adjustments necessary. Once in power, they can keep repeating these messages so we will remember who's responsible for making us drink the nasty medicine. Fair blame to be apportioned to those Conservatives who failed us in the past, too - in reality, it's hard to find anyone among the British public so ignorant and cretinous as to think that either party can present a perfect record. Whom do the spinmeisters think they are kidding?
2. Or they will lose, and Labour can try to clean up after itself, fail disastrously, and shuffle into the shadows of history.

Or of course, the Tories can continue to do what they are now doing, and let us draw our conclusions. Then both major parties can fragment and, with any luck, die.

So, three choices: win straight, lose straight, or be unmasked. Because I'm darned if I'll vote for a Buggins'-turn pack of careerists, merely for the sake of a change from the conspiratorial, traitorous dictators we've got now.

"... return OF capital, not ON capital"

I noted yesterday that foreigners were rushing to stuff cash into the US Treasury pillow. Brad Setser chimes in, explaining that although there's no yield (see his graph below), at least the capital is safe. We hope.

Banks: justice will not be done

Financial website ThisIsMoney speculates that the FTSE could drop another 20%. I couldn't resist commenting there:

20% down would be about right. The banks have blown up a balloon for the past 5 years and then popped it - it's what they do. They cannot be punished severely enough, nor can the regulators who shrank reserve requirements. If the FTSE hits 4,000 I will finally be able to invest again.

This temple-cleaning call is also pretty much the view of Karl Denninger, but he's doing more emphatic bold, capitals and underlining - unconsciously betraying that he knows, deep down, that "it ain't gonna happen, Cap'n."

Gold pogoes up

Oh, look (14:49), gold's sprung upwards (see sidebar widget) - nudging $800.

UPDATE: ... or rather, $838 (17:50).

An 11% gain since I flagged it up 6 days ago. But when should the short-term speculator sell? $850?

And in the comments to the same piece I said I was wondering what was holding stocks up. Now I know - nothing much. But there'll be a bear market rally shortly, doubtless.