“It is typical of government price-fixing schemes that they escape one undesired consequence only by plunging into another and usually worse one.”
-HENRY HAZLITT, FROM HIS CLASSIC BOOK, ECONOMICS IN ONE LESSON.

POINTS TO PONDER

1. There are several reasons why Canada appears to be one of the safest global venues for bond investors.

“I cannot forecast to you the actions of Russia.  It is a riddle, wrapped in mystery, inside an enigma.” 
-WINSTON CHURCHILL

The above line from Sir Winston, who unquestionably was one of the most prodigious quote-miesters of all time, could easily be applied today to that other former arch foe of the west:  China.  

“Anyone who isn’t confused really doesn’t understand the situation.”
-EDWARD R. MURROW, JOURNALIST

POINTS TO PONDER

1.  Until recently, it appeared as though the very sub-par expansion in the wake of the Great Recession was coming to an inglorious end.  Over the last couple of months, however, industrial production and employment have both rebounded sharply. 

“The future price tag of printing six trillion dollars’ worth of checks comes in the form of inflation and devaluation of currencies either relative to each other, or to commodities in less limitless supply such as oil or gold.”
-PIMCO’S BILL GROSS

2012: Triumph of the Central Banks. Wow! Didn’t I just do one of these?

“How long can the world’s biggest borrower remain the world’s biggest power?” 
-LARRY SUMMERS, FORMER US SECRETARY OF THE TREASURY

1.  The US is presently trapped in the vise-grip of political paralysis irrespective of a less than impressive resolution of the fiscal cliff.  Fortunately, despite the utter lack of leadership from our elected officials,