SAR #12167

The burden of proof should rest on those who profit.

Thin Reed: The markets closed at 30-day highs because investors Wall Street believes that this time the world's central banks will save the day limit the carnage. Oh, wait, been there, done that.

Priorities: Don't worry about the Greek election; Greece is a sideshow – the real deal is Spain. With the market demanding a 7% yield, Spain has to generate at least a 5% return in order to pay back the money it borrows. How likely is that? Then what? Will more austerity help? Has it so far? Pretty soon no one will want to lend Spain any money. Then what?

Whistling Past The Graveyard: OPEC says that petroleum at $110 a barrel is a fair price, one that the world's economy can afford. Too bad the world economy is collapsing and can't afford $90 a barrel.

Unexpectedly #237: US industrial output unexpectedly fell 0.1% in May, sharply down from April's 1.0% gain. Consumer goods, especially weak auto production, led the decline. Consumer confidence also fell unexpectedly, missing expectations by the largest margin since 2006.

Cue Dramatic Music: This year's Arctic sea-ice extent has already dropped below the 2007 record for lowest in recorded history. May 2012 was the 36th consecutive May and the 327th consecutive month with a global temperature above the 20th century average. There is no consolation prize.

“Generally Low”: A National Research Council report found that injecting wastewater underground – as part of fracking – can cause earthquakes, but not very often and only of a magnitude of 2.0 or so. Go back to sleep.

Rules of the Game: "During the financial crisis, at least 18 former and current directors from Federal Reserve Banks worked in banks and corporations that collectively received over $4 trillion in low-interest loans from the Federal Reserve." How did you make out?

Is There An Echo In Here? Last weekend, Spain celebrated getting €100 “with no strings attached.” Thursday the ECB said that Spain must make further cuts to meet its deficit target of 3% of GDP next year. Now the IMF, designated adult looking after the EU's money, says Spain must raise the VAT tax (now) and cut public employee wages (again), saying that even with the bank bailout funds Spain's future looks “very difficult.”

Self Inflicted Wounds: ExxonMobil is complaining that climate extremes and increased storms made worse by the global warming effects of the CO2 from burning petroleum are cutting into their profits.

Hook, Line & Sinker: The hitchhiker who was writing a book on the kindness of Americans and who claimed to have been shot by a passing stranger, now admits he shot himself to drum up interest in his book. It gets lonely on the road.

Bragging Rights: The US Navy has increased its presence in the Asian Pacific by 20%, now deploying 60% of its warships in the theater. As Secretary Panetta explained, “Make no mistake, in a steady, deliberate and sustainable way, the United States military is rebalancing and bringing an enhanced capability development to this vital region." Rebalancing my foot.

Politically Incoherent: The Republican National Committee reached out to the Latino community via the Internet, expressing concern for the difficulties they and their families face. The website featured a photo of Asian children.

Porn O'Graph: Visualize the warmth, feel the heat...

The Parting Shot:

Time to slip away...