As California goes, so will the US. It is our strong suspicion here at Notes that California’s fiscal crisis (what is really a profligate spending crisis) is but a prelude to the coming national debt crisis.

When the Labor Department recently reported that U.S. payrolls fell by 345,000 jobs in May – the lowest total in eight months – commentators were suddenly spotting “green shoots” of economic recovery virtually everywhere they looked.

Fed’s Beige Book disappoints…Dollar rebounds on the day…Currencies come back on the night…RBNZ leaves rates unchanged…And Now… Today’s Pfennig!

Another Treasury auction today… Spending habits come back to haunt reps…Some healing in the currencies…10 Banks to repay TARP today…And Now… Today’s Pfennig!

We’re now in an extended bounce which could last until mid-summer. Stocks were up yesterday… the Dow rose 196 points.  What were investors thinking?

Last week, the European Central Bank squared its shoulders and joined ranks of the damned. The Times of London reported that in joining up with the US Federal Reserve Bank and the Bank of England, the European Central Bank “pulled out all the stops” in their drive to revive their economies.

The BLS adds jobs…  Growing Deficits again… Jim Rogers….  A Trade Surplus for Canada… And Now… Today’s Pfennig!

Buenos Aires, Argentina Is the rally still on? We’re not sure. Wednesday, the Dow fell 83 points…after a weak bounce on Tuesday. We expected the rally to last until June and to take the Dow back to the 10,000 range. But anything could happen.

What a wonderful time to be alive! Never has it been easier to feel superior to our fellow man! So many dopey ideas…so many preposterous delusions! So many fools…so eager to part ways with their money!

Currencies rebound …  Budget Deficit makes up for Trade data…  China’s currency reserves continue to grow…  High yielders are best performers… And Now… Today’s Pfennig!