Is the rally over? Not at all! The world’s bankers say the economy is recovering. Investors believe them; they’re bidding up stocks.

A guy comes into the bar, and I figure he is a trucker because he looks like a trucker and he is wearing a greasy Peterbilt hat. So I say, “Are you a trucker?” and he answers “Yeah. What’s it to you, old man?”

Here’s a small victory, worthy of breaking out some Andre Brut: The U.S. government budget deficit is more likely to ring in at $1.58 trillion this year, not the $1.84 trillion the Obama administration reported in May.

The dollar will probably go up. Still, we’d stay away…

No currency movement to speak of… Buffett calls out the deficits… PIMCO does too! SNB selling francs to stem gains… nd Now… Today’s Pfennig!

“If gold is ‘past its day’, what of toxic derivatives and today’s deluge of US Treasury bonds…?” Just like poor Pip Dickens’ Great Expectations, central banks keep inheriting unwelcome bequests.

Oh woe! Oh woe! O! Bama! Where is thy recovery? Yesterday, the world’s stock markets took a hit. The Dow lost 186 points… following a very bad showing in China. Is this the end of the rally?

How do you like this recovery? Pretty good, huh? Except for the jobs, of course. And except for the retail sales. And except for the foreclosures… and house prices. And incomes. And consumer prices. And business profits. It’s like a female impersonator… just like a real woman in every way, except for the essential ones.

Man’s hope! Yes, it’s the ‘miracle economy’. China, that is. Many analysts think it has ‘de-coupled’ from the rest of the world economy. While the rest of the world sinks into the ‘worst recession since the ‘30s,’ it is said to be growing at 8% per year. Go figure.

Currencies adrift all day yesterday…Data prints begin today with Productivity…Stop to think! Chinese data is impressive…And Now… Today’s Pfennig!