Sunday, June 11, 2006
Nattering Nabobs of Negativity
Well, The New York Times is at it again. Above this post you will see the cover of this week's New York Times Magazine. It depicts the debt bogeyman coming to get you. Its colors are the classic colors of fear, red on black. To the left of this post you will also see some artwork which accompanies the cover story. It depicts Uncle Sam as Gulliver being tied down by the Lilliputians with ropes of debt.
What are we to make of this? Well certainly the NYT is continuing its downbeat propaganda compaign that tries to convince its readers that the US economy is in trouble. But my theory of the big media is that they are in the business of telling people what they want to hear. So this story is good evidence that, at least among the elite in the USA, there is a lot of negative sentiment about the US economy and its prospects. As far as I am concerned this means that no significant drop in stock prices is likely for the forseeable future.
I note also that the bogeyman of debt is a contrary opinion signal that the US bond market is headed up from here. And I think it that Gulliver/Uncle Sam is telling us that the US dollar is headed up too.