Im back....Since S&P is doing the useless downgrading anways...

Here, since I am currently preparing to write about how the power of the world is about to shift from a single dominant power back to a system of balance of power (like in Europe for the past centuries), here are two interesting charts, one on global arms exports and the other comparing the military power of China and the US.

By the way, like I called it, we should see the US market dip ( I called Dow 12000 the shorting point and those of you that listened, you are well in the money with shorting the YM futures, but please, keep riding this trend and slam the whole thing down, we don't get much of these opportunities) and there will be no QE3 package in the US as it is a suicide pill that will take the country into stagflation if it doesn't work. Uncle Ben is a student of the great depression and he understands the consequences of failure. He knows how painful the lost decade was for the Japanese and he won't risk the US economy into the same black hole. ECB is the only one that can push though a QE1 for them and we are seeing it as they are starting to pick up all the EU bonds in the secondary markets these days.

And the S&P downgrade, what kind of BS is this anyways? Its not like we don't know the US's balance sheet is crap, we know this for decades. There is 14Trilion of debt and like 70 Trillion of unfunded liabilities, we all know that, its not a secret. Why a downgrade all of a sudden? Its so useless! They have the currency reserve, as long as they keep it, it doesn't matter what your downgrade is, even at BBB, the 10 years still trade below 2.7%, so what a bunch of non sense...