Yesterday, we showed pictures of the price of a dollar in gold, silver, euros, and yen. Here is a picture of the price of a dollar in board-feet of lumber. This is a bit silly, as lumber is not a currency. But it is interesting that it shows the same phenomenon. Also, there is an implication for the real estate market: the number of buildings under construction out of wood is falling.
Federal Reserve Bank of Chicago President Charles Evans said that he hopes the economy will achieve “escape velocity”. That sounds scary, but we don’t believe that there is any escape from the black hole once interest rates have fallen below the event horizon (which line has been crossed).
Lois Lerner, a top IRS official in the division which now stands accused of politicized audits of enemies of the Obama administration, will invoke her Fifth Amendment right not to testify on grounds it may incriminate her. If only taxpayers had the right not to incriminate themselves in their dealings with the IRS…